The bug
Blocks held by witches are upside-down. Assuming that it uses the same rendering methods used for players I would expect all items to be displayed correctly.
How to reproduce
Use the following command:
/setblock ~ ~ ~ repeating_command_block{Command:"/data merge entity @e[type=witch,limit=1] {HandItems:[{id:\"tnt\",Count:1b}]}",auto:1b} replace
Spawn a Witch
Can confirm for 1.10.2. All items and blocks are affected, including the witch's potions.