Campfires have always been able to set players and mobs on fire. However, in the recent update of 1.19.73, they are not doing that. However they are still doing “normal” damage like Magma Blocks.
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Duplicate of MCPE-169660, As of work as intended
Campfires do not set players and mobs on fire anymore, but still inflict damage (MCPE-98931)