If you are in spectator mode, click an entity to spectate it, and then move your mouse around, you see that Flames of Torches where computed from where you have been first (where your field of view is). Also it seems that sounds are computed the same way. If i am spectating an entity and moving my mouse around, the sound is sometimes on the right of my headset and sometimes on the left.
Easy way to reproduce the bug: Spectate an enderman and move the mouse, you will see the particles rotating.
EDIT: As stated in the title it not only depends on the rotation, but also on the location where the player started spectating the entity.
An example: I set up a sound source (note block with a clock) and placed an entity next to it (armor stand). I started spectating the entity and while moving the mouse, the sound rotated around me (as stated above). Then I added the levitation effect to the armor stand. The volume of the sound didn't decrease as I moved away from the source of the sound. When leaving the spectated entity the sound stopped immediately as I was to far away from the note block.
Assumption by @unknown can be found in this comment.
Explanation by @unknown can be found in this comment
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It seems so.
I just tested it in 18w21a with the following setup:
Placed a note block with a redstone clock that played it repeatedly
Spawned a bat near the note block
Went into spectator mode and spectated bat's point of view by clicking on it
The bat moving around didn't seem to change the stereo location of the note block and it moving away didn't seem to fade away the sound. Moving the cursor though, does change the stereo location of sound sources and the orientation of certain partices as if the player was rotating, though it doesn't because it's specating an entity.
Conclussion: Still reproduces in 18w21a
Appears to be fixed as of 19w14b. I predict this was actually fixed in 19w11a along with MC-926.
Confirmed.