The bug
Blocks are lit up with jagged, non-smooth edges, even when smooth lighting is set to true. This only happens between light levels 0 and 1.
Related issues
is duplicated by
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Doesn't just affect snow, it affects all blocks.
Best tested in a cave world.

Can confirm for 1.16.2
Can confirm in 20w51a.
Can confirm in 1.17.

Can confirm in 1.17.1 Pre-release 1.

Can confirm in 1.17.1 Pre-release 2.

Can confirm in 1.17.1 Release Candidate 1.

Can confirm in 21w37a.

Can confirm in 21w39a.

Can confirm in 21w40a.

Can confirm in 21w43a.

Can confirm in 21w44a.

Can confirm in 1.18 Pre-release 1.

Can confirm in 1.18 Pre-release 2.

Seems fixed (or at least improved) in 22w16b. Edit: nevermind, this is still the case in 22w16b.

In 1.20.4
This seems to only occur when the block light level is transitioning from 1 -> 0 and the sky light level is 0. When sky light level is higher, the transition is smooth.
Underground:
[media]
Above ground:
(Bearing in mind MC-194624 or it's rooted issues)