The bug
The hitbox or block outline of a dragon head is impossible to see because it’s the same size as a normal mob head, even though the dragon head is much larger. This makes it impossible to tell if the block is highlighted or not.
How to reproduce
Turn on “high contrast block outlines” in accessibility settings
Place a mob head and look at it
Now place a dragon head and look at it
Expected results
Both blocks should have a visible outline
Observed results
The dragon head does not. If you clip inside the block, you can see that its outline is entirely contained within the model
Can confirm