Some mobs like sheep or horses do not drown in water if they are trapped floating up against blocks (pigs and foxes, for example, do drown).
Steps to reproduce:
Find an ice river/ice ocean or a water-filled cave (or place blocks in water).
Summon a sheep or a horse under the ice/cave ceiling/blocks (more mobs may work, requires further testing).
The mob now floats up against the ceiling.
❌ It does not drown despite being trapped in water.
Edit: After further testing I found that the bug also affects cows, donkeys, mules, llamas, camels, chickens, ocelots and probably many more types of mobs.
Can confirm