The bug:
Rotating elements in entities are shaded incorrectly. This can be easily observed in:
The player's head when it moves around;
Panda heads while they're sitting;
Lazy pandas while they're laying;
Shulkers when they're not standing upwards;
Villagers when they're sleeping;
Any mob when it's looking up;
Armor Stand arms in certain poses;
Ravager's different body parts;
2D projectiles (they behave similarly to the player's head).
Screenshots/Videos attached: Yes
Notes: This is an issue with Render Dragon, and it's one of the only things that differ visually from the old rendering engine.
Fixed in 1.17.20.22 Beta (Thank you! Very happy about this!)