If the player and their mount are inside a large hitbox, such as a slime or an interaction entity, they are able to damage and/or break their vehicle, including but not limited to boats, minecarts, and horses, which is different to when outside the hitbox.
This is likely to be Won't Fix, and there's no real need to fix it, but I figured that there's no harm in reporting.
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May be a more inclusive version of MC-252462.
Relates to MC-260305
Can confirm, its also possible to interact with other entities while inside an interaction entity sometimes. Although a new issue might need to be created for that.