If there are two players on the server and one is loading water mobs somewhere in the river, then the second player may stop appearing mobs. I don't know if this affects other peaceful and passive mobs, I noticed this when I was standing on the squid farm. Prewious task was marked as "Invalid" bacause of "modded game", server core is pure vanilla.
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Where did you get that server by paper type? That is, server problems are considered invalid due to client-side addons???
You must be able to reproduce the bug on a vanilla server using a vanilla client launched from the vanilla Minecraft launcher in a vanilla world that has never been opened with a modified version of the game. The command feedback in chat in your provided screenshots indicates that this did not happen in a vanilla environment.
That chat feedback is not vanilla.
Issues are only accepted for fully vanilla setups, servers like paper are not accepted.