Sometimes the glow squids are 50% spawning inside blocks (in this example bottom side) and are stuck inside these (permanently rotating, but not moving)
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I think you discribed this bug wrong. The fact that they spawn inside blocks is intentional. The real bug is that they get stuck.
ampolive
@unknown The first statement is incorrect. The squid is not spawning inside the block, it is spawning on the block above, because its tentacles are not part of its hitbox.
If you are in spectator mode, squids and glow squids will stay still and just rotate because their AI is disabled if there is no player nearby, which is tracked in MC-212687.
Fruxz