Trees seem to appear a couple blocks above water. It looks like they spawned in that way. I have observed this in a fresh 1.17 world, as well as a world converted from 1.16.4 to 1.17.
The attached image shows birch trees, but it is not limited to birch.
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anthony cicinelli
Thank you for your report!
We're tracking this issue in MC-225839, so this ticket is being resolved and linked as a duplicate.
If you would like to add a vote and any extra information to the main ticket it would be appreciated.
If you haven't already, you might like to make use of the search feature to see if the issue has already been mentioned.
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Thanks Anthony! Was just going to comment this duplicates MC-225839. Appreciate the work you're doing!