If you use a puffer fish bucket in a 1-block hole, you will not be able to put blocks just above the water block (although the block will show for a moment and then it will disappear). This only happens with the puffer fish, with the rest of the fish it does allow to put blocks.
Thank you for your report!
We're tracking this issue in MCPE-49606, so this ticket is being resolved and linked 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 – 📧 Mojang Support – 📓 Project Summary – ✍️ Feedback and Suggestions – 📖 Game Wiki