I just installed the new update and created a new world without any addons or experiments and spawned in a wolf grabbed wolf armor and blue dye and when I tried to dye the armor in a crafting table it didn't work.
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We're tracking this issue in MCPE-179278, so this ticket is being resolved and linked as a duplicate.
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Duplicate of MCPE-179278, General dying mechanics are different between Bedrock and Java, so dying Wolf Armor works for cauldron (same as for Leather Armor) not a bug.