Here we can see 2 observers. One looks down and gives a full signal reacting to block (cobweb) placing, but the signal doesn't go to the nearest redstone dust to the left. The other observer also detects placing of the block (cobweb) and redstone signal works as it should. I have really no idea why does it work like this. Version 1.17 full release, vanilla, as shown on the screenshot.
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This is because observers are transparent redstone blocks, they don't conduct redstone signal.

This is because observers are transparent redstone blocks, they don't conduct redstone signal.
But technically its just redstone who transmits signal but not the observer

But technically its just redstone who transmits signal but not the observer
The wiki has more information about the implications of blocks being transparent to redstone: https://minecraft.fandom.com/wiki/Redstone_circuits/Transmission#Vertical_transmission.

The wiki has more information about the implications of blocks being transparent to redstone: https://minecraft.fandom.com/wiki/Redstone_circuits/Transmission#Vertical_transmission.
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Thank you for your report!
We're tracking this issue in MC-3311, so this ticket is being resolved and linked as a duplicate.
That ticket has already been resolved as working as intended, which means this is not considered a bug and won't be fixed. Please do not leave a comment on the linked ticket.
If you haven't already, you might like to make use of the search feature to see if the issue has already been mentioned.
Quick Links:
📓 Bug Tracker Guidelines – 💬 Community Support – 📧 Mojang Support
📓 Project Summary – ✍️ Feedback and Suggestions – 📖 Game Wiki