Water appears to be in boat which is a visual glitch considering water is not inside boats with ray tracing turned off.
Here I attach a few images to make it crystal clear:
Ray tracing off:
ray tracing on:
and also Obviously Removing water texture does not remove it from boat, it just makes water transparent but you still see water reflection & caustics in boats.
Edit:
Bug is listed in known issues.
https://help.minecraft.net/hc/en-us/articles/360042255511-Minecraft-with-Ray-Tracing-Known-Issues-List
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