Workaround
This issue is reportedly triggered by the server-authoritative-movement setting being set to "client-authoritative," per this comment. You should be able to work around the issue by setting it to "server-authoritative."
Some other issues related to the server-authoritative-movement setting have been linked below as "related". You may want to check if they impact your server as well.
unable to place blocks on hopper would instead open the hopper and not place block same can be said for furnace's,anvil, cartography, brewing stand and chests. these are only the ones i have tested and happnes on all sides of the block. signs would also can not be placed on chest showing the same behaviour
video showing the problem: https://1drv.ms/v/s!AjEMibc9C50_hkRFTU1zLSM4jOiI?e=2hAezK
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Are you using any addons, for example one player sleep?
This report is being set to "Awaiting Response." It will be reopened when the requested information is provided.

I am having the same issue as mentioned above. Playing pocket addition iPadOS. No mods, behaviour or resource packs. V 1.19.70

no i am not it is a completly vanilla game
Resolving temporarily as Awaiting Response. Is this an issue in new worlds created on version 1.19.70? If not, could you export an affected world and upload it here (if it exceeds the file size limit, you can upload it elsewhere, e.g. to OneDrive, and link it here)?
This ticket will reopen automatically when you reply.

the affected world :
https://1drv.ms/u/s!AjEMibc9C50_hkU5e22gjaVTDYpY?e=MMby8Z

I cannot reproduce this in the attached world.
Could we get more information on your input device (mouse, keyboard, controller?) and any custom key/button mappings you are using?

I have had problems with it using keyboard, mouse, controller, and phone without any custom mappings

There is obviously something going on with blocks and entities with an inventory and sneaking. I have an add-on that can demonstrate it clearly, but out of non disclosure stuff, I would only privately send it to the moderator "GoldenHelmet" to review, and not put it here publicly. I don't know if that is acceptable.

Having the same problem (cannot put chests on chests without the chest's inventory opening while crouched, same for facing hoppers into them).
Seems to be a wider problem with crouching though. I also can't put down a boat on a button while crouched for example (spawnproofed ice road), so seems to have to do with all interactable blocks.
Happens on survival server, playing with controller on PS4.

Test Pattern: you may message me directly through Discord, GoldenHelmet#9852, or create a private report here on the bug tracker and mention this one.

I have the same issue on my Aternos server. Problem can not be recreated in a single player world.

Happening in Win 10 too, the bug is limited to online servers and survival mode, working fine in creative mode. In singleplayer it's working perfectly both in survival and in creative but apparently on servers it's causing issues in survival mode only
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Does this affect all players on a server at all times?

Yes, everyone.
We haven't been able to reproduce this so far - is this happening on any specific public servers?
If this is happening in your own dedicated servers? If so, have you checked whether there are any specific server settings that might be triggering this issue?

This is happening on my dedicated server. Everyone on the server is experiencing the same issue. I cannot replicate the issue when spinning up a new server (same version). This seems to only happen on our current world.
This started happening at some point after upgrading to 1.19.7x.
Im running the server on Debian 11 (bullseye) x86_64.

Hey guys, good afternoon.
I just did some more testing and when changing the setting "server-authoritative-movement" I am seeing the effect. the setting "client-auth" is giving the error and "server-auth" is not.
To clarify when "client-auth" is set the players are not being detected as crouched and then see the promt screen for the item (hopper, chest, etc.). They are then returned to a standing position, even if the crouch is held down.
This is my observation anyways 🙂
I am running my server on windows currently. Just for context.

@dragonsamus This fixed the issue for me. Thank you for investigating!

@dragonsamus Turning on "server-auth" solved the problem for me as well! This issue could seen a resolved now imo

I use a Windows 10 server and changes from Client-Auth to Server-Auth-with-Rewind and it worked! Thank you for the workaround.