Lava and water textures are appearing bugged once you proceed past y = 0. Only the top texture of the lava and water source blocks are rendered while the flowing textures fail to load except the top texture. Dropping water/lava from a height higher than 0 looks fine until it passes 0 where it becomes its glitched form.
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We're tracking this issue in MCPE-126658, so this ticket is being resolved and linked as a duplicate.
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