I found a village that generates in a mountain, and created terrain under it like a weird shelf sticking out of the mountain. I believe this generation of terrain under houses is intentional, but not in this way. I've attached screenshots of both the big on bedrock and in Java, where it's less obvious. The seed is 123456789
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This is intended as per MC-140632.
The villagers could have been advanced enough to do that 😃