Rabbits typically create particles when running, similar to sprinting players. This is glitchy in water because they use the same particles, but with a water texture, so there are animated little squares of water coming out of my rabbits in a water puddle 😛. The particles also use normal gravity, so tiny bits of water are sinking through the water. This is a simple fix, just check if the rabbit is inside a material(water) and then only create particles if it is not in water.
I hope I helped 🙂
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Umm this doesn't look intended. Water doesn't break into smaller pieces as it sinks into other water.
Making exceptions ("Show particles of block below, except water") will mess up the code.
It's better to have the default behavior with some lovely Minecraft quirks.
Intended because water is considered as blocks even if you can go inside it