This seems to be the same exact issue as MC-167279 but with Allays instead of Bees.
After a while of flying over the void/after reaching a certain height, Allays will freeze up and become immobile, even if given an item.
Linked issues
is duplicated by 2
relates to 1
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Comments 3
Confirmed in 22w16a.
Can confirm in 1.21.
Can confirm in 22w14a.