I've been testing for some time and exploring I noticed flooded azalea trees and ruined nether portals, I don't think it makes sense since you cannot lit a portal underwater, and trees normally dont generate in water.
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We're tracking this issue in MC-179139 and MC-218592, so this ticket is being resolved and linked as a duplicate.
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Duplicate of MC-179139 (resolved as "Works As Intended") and MC-218592.