I am able to place Sugar Cane in the water and its not breaking automatically, usually it would break because the water would flow into it and destroy the block.
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[media][media]
Hello! This looks to be a duplicate of MC-929.
Additionally, I see that you've posted this report in the MCL project (for the Minecraft Launcher) – in the future, you should select MC for Java Edition or MCPE for Bedrock Edition, so your report can be seen by the right users. 🙂