This is in the latest 1.14.3 Pre-release 2 update. Villagers do not seem to panic at all anymore. Please see attached video.
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Can confirm. In my test setup, I made sure that the zombie and villagers can pathfind to each other. The villagers still run around like crazy, but they don't spawn the fear particles and don't spawn iron golems either.
This is working as intended:
Panicked Villagers now have to work and sleep so they can't be in a state of panic all the time
That doesnt make sense... This is still not working, villagers are not entering a state of panic. "Panicked Villagers now have to work and sleep so they can't be in a state of panic all the time" means that villagers can sleep and work to remove the state of panic... so what does that have to do with them entering that state? They are not panicking when in sight of hostile mobs.
This needs to be high priority as its a function that is not working