In overworld, place mud on block and pointed dripstone underneath, then in turns - with random tick - into clay.
This does not happen in Nether, see screenshot. The block underneath is not important, it does not work.
Bug or intended?
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Dupe of MC-250083? (I think it's a viable alternative that Mojang might consider for you.)
MC-250083 talks about just placing mud anywhere in the nether. Just like a wet sponge instantly turns into dry sponge. I talk about the "overworld" mechanics to slowly dry out mud with a pointed dripstone underneath ...
I think it's intended, pointed dripstone in the Nether drip lava instead of water