Moving observer on cool-down suppresses shape updates and leads to a client server desync

Observers do not give out updates when retracted by a piston that is facing the same direction as the observer. To recreate, build pictured. In the block update testing circuits, place the redstone block at the top left last. Trigger using the noteblock at the bottom. The smaller circuit exhibits strange behavior after repeated triggers. Interacting with the fence disconnects it on the client. The same behavior is observed in iron bars, walls, etc.