The bug
When spawned with skulls and soul sand, the wither used to show its bar slowly filling up the health right before it was about to explode and be ready for fight. That is no longer the case in this version. Compare it with 1.8.9 to see the difference. This means also that command blocks are unable to detect the health of the wither.
Code analysis
Code analysis by @unknown can be found in this comment.
Linked issues
is duplicated by 3
Comments 20
Can confirm that yes, this does still happen in 1.16.2. The fix mentioned by Insane96MCP works perfectly (moving the call to update the boss bar outside the if/else block). I recently fixed this bug in Paper with the following patch file (2 line diff): https://github.com/PaperMC/Paper/commit/c8542f236568b6e168f59d79b02d62d3fb11f690
Confirmed for 16w15a and 16w15b