If an observer points down so that the Redstone output points up and you place a Redstone Dust on top of it and place a Redstone Dust next to it 1 down, then the signal is NOT transmitted one level down the edge of the observer.
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violine1101
Thank you for your report!
We're actually already tracking this issue in MC-107671, so I resolved and linked this ticket as a duplicate.
If you would like to add a vote and any extra information to the main ticket it would be appreciated.
If you haven't already, you might like to make use of the search feature in the future to see if the issue has already been reported.