The water fog used to increase its range the longer you stayed underwater, to create the effect of your eyes adjusting to the water. That is no longer the case with the new fog.
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It appears to be a mistake on my side, apparently it never changed. Only the fog color changes, but the distance doesn't. Since this is the behavior on Java Edition, I assumed it was already a thing on Bedrock.
Has this changed in 1.17.0.56 specifically? If possible can you add a video of what has changed, or at least a description? Because the water visibility does change from what we're seeing when testing.