Falling block smooth lighting transition seems to be interpolating incorrectly

Falling blocks is one of the few, if not the only entity that is affected by smooth lighting. However the smooth transition isn't preserved when this entity is being moved or when placed outside the usual block-grid (in between 2 blocks).

This behavior can be seen in the attached video. The falling block is mounting an invisible armor stand, while the armor stand is being teleported to the player every tick.

Expected result
The falling block smooth lighting transition would be preserved while moving.

Observed result
Smooth lighting interpolation is broken when it is moving.