The sheep's outline or hitbox is displayed slightly incorrectly when it is hit with a spectral arrow (see image).
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Not a dupe as this is almost completely unrelated to MC-83143
MC-84034 is resolved as a dupe, so why shouldn't this be?
Highlights sheep when sheared only. Apparently the sheep's wool is its "armor", which explains why the wool is not invisible when thrown with an invisibility potion.
Dupe of MC-83143