Observers will not detect melon and pumpkins growing or producing a melon block or pumpkin. I have brought this up before and was told my report was invalid due to my use of optifine. I recreated the farm in Minecraft without the use of optifine. The results were the same with the observers not detecting the changes. They, do however detect the change of wheat seeds and other plants.
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This report is invalid. Your redstone isn't connected to your pistons. The Observer is still detecting the block update just no power goes to the pistons.
As you can see, due to the debug screen, there are no mods including optifine running.