When I use two pistons to push a rail and the block supporting it in perpendicular directions at the same time, the rail drops as an item (whether it's being pushed onto a solid block or not) but remains visible and partly functional as a block. It carries minecarts if there's a solid block under it. It blocks existing water if the block it displaced was doing so. It extinguishes fires and destroys crops. And it can be pushed by additional pistons.
This must be a glitch, because the fake rails disappear (without dropping anything) whenever the game is saved and reloaded, or they are broken, or they gain or lose redstone power (even if they aren't Powered Rails).
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Update: The effect of extinguishing a fire is fake – the fire can still spread to adjacent blocks, and it reappears when I save and reload. So probably the rail only exists in the client's copies of the chunks, and the bug is a false client-side prediction that never gets corrected.

However, it persists after holding F3 and pressing A, at least in single-player mode and as the LAN host.

I could not reproduce. Whenever I make the setup shown I get the rail breaking as expected. No visual glitches or anything. I tried in several different orientations but got expected behavior each time.

Confirmed for
1.8.4
1.8.7 It seems like the direction it is facing doesn't matter but the lever must be attached to the block below the upper piston

Confirmed for 15w33c (1.9)

Confirmed for 1.10.2.

Confirmed for 17w06a

Confirmed for 17w13a, 17w13b, 17w14a, and 17w15a

Confirmed for 1.12 Pre-Release 5
Can confirm for 1.12
Can confirm for 18w07c
Can confirm for 1.13-pre3

@unknown, ticket is yours now.

Can confirm for 1.13-pre4

Can confirm for 19w34a

Confirmed in 1.16-pre5.
Can confirm in 20w48a.
Can confirm in 20w51a.
Relates to MC-179573.

Affects 1.17
Can confirm in 1.19 and 22w24a.
[media]Can confirm in 1.19.2.

Confirmed in 1.21.3