I was playing the new 24w04a snapshot to see the new armour trim features. I was in a superflat world and saw a nearby village. At the village well, I heard glow squid noises. I went into spectator mode to see where they were, and it turns out that there were multiple that had just spawned in a 2x2x2 area of water in an underground cobblestone box.
Glow squid spawn conditions are just no sky access, in water, and under a certain height.