Mobs spawn in but are invisible. They can still deal damage but you can't see them. This problem has only started happening after 1.16.100 and wasn't repaired in the hotfix.
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Thank you for your report!
We're actually already tracking this issue at MCPE-71243, so I will resolve and link this ticket as a duplicate.
If you would like to add a vote and any extra information to the main ticket it would be appreciated.
If you haven't already, you might like to make use of the search feature to see if the issue has already been mentioned.
Quick Links:
📓 Bug Tracker Guidelines – 💬 Community Support – 📧 Mojang Support
📓 Project Summary – ✍️ Feedback and Suggestions – 📖 Game Wiki

Thank you for your report!
We're actually already tracking this issue at MCPE-71243, so I will resolve and link this ticket as a duplicate.
If you would like to add a vote and any extra information to the main ticket it would be appreciated.
If you haven't already, you might like to make use of the search feature to see if the issue has already been mentioned.
Quick Links:
📓 Bug Tracker Guidelines – 💬 Community Support – 📧 Mojang Support
📓 Project Summary – ✍️ Feedback and Suggestions – 📖 Game Wiki