You cannot place a block on the top of a fence with a leash tied to it without first removing the leash.
Steps to reproduce:
1. Place a Fence.
2. Attach a leash to it.
3. Attempt to place a block on the top of the fence.
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Confirmed
Cannot reproduce. If you dont click on a fence instead of leash everything is working as it should.
EDIT: Reproduced it: Only top part of solitary (not attached to other fences/blocks) fence cannot be clicked on.

Related to MC-13773, in that they describe opposite behavior: placing a block on the fence breaks the leash.
Torabi, the the punch destroys the leash, because the crosshair is focused on the leash, not the block. The leash receives the click, not the block, so instead of a block being placed, the leash breaks.
Even on a connected fence, the middle part still can't be clicked, but the edges can.
It seems that the leash hitbox is positioned incorrectly, see screenshot.
Fixed in 14w11b