MC-791 is still not completely fixed in newest snapshot.

I see no bug, is this not rails connecting to rails?

If it is, it very wonky, for example if you are looking forward it still connect to the sides instead of the wanted result of connecting it downwards, and if you place three rails the first two would connect sideways but the the third one won't, and sometimes even if it already connected to a rail that going forwards and you place one to the side it would connect to the rail in the side.

After looking at this, yes, this seems like it's intentional: The rail is just connecting with other rails when next to them. Maybe that way of placing rails is not ideal, but it's not really a bug.

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Indeed, rails connecting to other rails takes precedence over placing in the direction you are looking.