if you go foreward while sneaking on the edge of a block and the next block in the diraction you go is a water block and you place a lily pad on the water block while still pressing foreward you fall into the water
I think you should either step onto the lily pad (like if the lily pad whould be a slab) or you should stop at the blockedge
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stoping at the edge is propably more intended because if you place a slab via /setblock it works the same as the lily pad

The underlying issue seems to be that the lily pad is placed despite intersecting with you, see MC-667.