When you bring the camera close to the player in third-person view, it reverses the zoom-in effect influenced by the FOV Effects accessibility setting, as addressed in the resolution of MC-214629, and eliminates water fog. However, this issue doesn't seem to impact lava. It may be related to MC-206561. The specific minimum distance required for this behavior to occur doesn't appear to be clearly defined.
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Hey! I can indeed confirm that this is an actual bug, I tested the bug and can confirm its occuring for me.
[Mod] Jingy
Related to, and may even possibly duplicate MC-206561 based on the source of the issue.
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MC-206561 reports a separate concern where water appears entirely transparent when the camera is at the surface. In contrast, the bug report in question pertains to situations where the camera is submerged underwater.
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This bug is confirmed!