All arrows, both enemy and player, fly for about 1 block distance before stopping. They can be collected as if they've struck a block. It does not appear to be a result of the snow as they stop in mid-air when fired anywhere. Saving/restarting did not fix the issue.
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I saw the exact same issue in the nether in single player. Ghasts and blazes were having no issue shooting me, although I also think that the fire effect as not playing on me when I was hit.