Turning off clouds does not get rid of the clouds, and instead locks them in place on your screen, rendering them behind all blocks. The bug can easily be recreated by looking at clouds, going into the video settings, and then disabling them.
I recorded a short video showing the issue. https://www.youtube.com/watch?v=VodxjjrbHrw
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We're tracking this issue in MC-186071, so this ticket is being resolved and linked as a duplicate.
That ticket has already been resolved as Fixed. The fix will arrive in the next version or is already included in the latest development version of the game, you can check the Fix Version/s field in that ticket to learn more.
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This is a duplicate of MC-186064.