When trying to get coral fans by bone mealing sand or gravel in a biome with corals naturally occuring, I get only corals and no coral fans.
How to reproduce:
Find an ocean with corals and sand bottom
Bone meal the sand
See that only seagrass and corals spawn, and no coral fans
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Myself and several others tested this quite extensively without any successful coral fan generation.
I tested this for 3hrs with 20+ different configurations in a deep warm biome (created via mcctoolchest) in survival mode with no results. By configurations I mean with pure sand; surrounding, with coral blocks; with gravel blocks; with coral and then with fans at one block away as a primer; and more besides, plus variations of the preceding configurations.
Each test was carried out using a dispenser to dispense the bonemeal and each dispensation session consisted of 3 bonemealing attempts for a total of 30 bonemealing attempts per test. No configuration was counted as a configuration unless the bonemeal was consumed. I think a 3hr, approx 1.5GB video should be on my pc somewhere if you want to see it (don't remember if I was recording for sure now but I conducted these tests on the same day as the bug was submitted here - discussed in analysing minecraft discord mobs and item farms).
This test was conducted on windows 10 edition
When ClayBlock, GravelBlock, SandBlock, and DirtBlock are fertilized, they call SeaGrass::trySpawnSeaGrass. This function randomly creates SeaGrass and Coral around the fertilized block. CoralFan (and CoralFanHang) are not created by this function. To fix this bug, CoralFan should be added as a possible block that SeaGrass::trySpawnSeaGrass creates. It's probably not worth it to add CoralFanHang.
Can confirm that this still doesn't work in the full release of 1.16.100. Now that buttons don't work for Creeper Farms, I was trying to make sure I can farm Fan Coral before I continue spending more time putting together a custom farm. I spammed the warm ocean floor with bone meal over and over again, I got seagrass and coral, but sadly no fan coral.
I tested this in a world on the seed "kph", and around location -2304, 44, -1311 in creative mode. Also tried a little in a closeby river in survival mode, and also there I only got corals and seagrass.