I was flying around (while recording) and I found a VERY LARGE stone biome, ive seen them for almost 3-4 updates but never this large, also witches randomly spawn in this biome, I don't know if its part of the update or what also on the far right large mushrooms are spawning randomly in forests
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The stone area you're pointing to is part of the newly revamped Extreme Hills biome. Now these large stone areas will be far more common, and the largely unnavigable landmasses are less frequent. I've actually seen even larger patches of stone in these areas than the one you're showing.
(Edit: as for the large mushrooms, you're looking at the new Roofed Forest biome, which is the second biome to feature naturally growing large mushrooms.)
In short, Works as Intended.
Don't know about the other issues, but the witch spawning was added recently. They can spawn anywhere other mobs can. I don't know if it is temporary for Halloween or not, someone might know the specifics on that.