Observed behavior: TNT underwater does no damage to players.
Expected behavior: When TNT is dispensed underwater, it damages players around it unless their feet are behind blocks – just like above the water.
Notes: This is inconsistent with the behavior from Java Edition which was marked Works As Intended in MC-26279 , and can serve as a parity correction to MCPE-21611 which was from prior to Buzzy Bees.
We are now tracking this issue at MCPE-89412.