squids spawn in lava

Can confirm this. They are spawning inside of lava.

In 14w29b too

Still in 30c / 31a (MC-64604).

Confirmed.

Confirmed as of 1.8.1 full release.

Please change the "How to reproduce" to this:

How to reproduce

1. Create a "Redstone Ready" superflat world

2. Go away from spawn (maybe about 1000 blocks)

3. Set /gamerule doDaylightCycle false to prevent monsters from spawning

4. Use the following commands

   /fill ~ ~-12 ~ ~50 ~-13 ~50 structure_void

   /fill ~ ~-1 ~ ~50 ~-11 ~50 lava

5. Go below the lava
   → Squids will spawn and fall down

Please link to this comment in the description

The following is based on a decompiled version of Minecraft 1.10 using MCP 9.30.

The reason for this is very likely that the method net.minecraft.world.WorldEntitySpawner.canCreatureTypeSpawnAtLocation(SpawnPlacementType, World, BlockPos) tests in case the SpawnPlacementType is IN_WATER (used by Guardians and Squids) only if the blocks are liquids. Instead it should test if the material of the block is water.

public static boolean canCreatureTypeSpawnAtLocation(EntityLiving.SpawnPlacementType spawnPlacementTypeIn, World worldIn, BlockPos pos)
{
    if (!worldIn.getWorldBorder().contains(pos))
    {
        return false;
    }
    else
    {
        IBlockState iblockstate = worldIn.getBlockState(pos);

        if (spawnPlacementTypeIn == EntityLiving.SpawnPlacementType.IN_WATER)
        {
            // Replaced this
            // Imported "net.minecraft.block.material.Material"
            //return iblockstate.getMaterial().isLiquid() && worldIn.getBlockState(pos.down()).getMaterial().isLiquid() && !worldIn.getBlockState(pos.up()).isNormalCube();
            return iblockstate.getMaterial() == Material.WATER && worldIn.getBlockState(pos.down()).getMaterial() == Material.WATER && !worldIn.getBlockState(pos.up()).isNormalCube();
        }
        else
        {
            BlockPos blockpos = pos.down();

            if (!worldIn.getBlockState(blockpos).isFullyOpaque())
            {
                return false;
            }
            else
            {
                Block block = worldIn.getBlockState(blockpos).getBlock();
                boolean flag = block != Blocks.BEDROCK && block != Blocks.BARRIER;
                return flag && isValidEmptySpawnBlock(iblockstate) && isValidEmptySpawnBlock(worldIn.getBlockState(pos.up()));
            }
        }
    }
}

Still in 16w33a

Still in 16w35a.

three cheers for mojang! they fixed it