A list of the problems:
Grass cannot grow or spread.
Trees cannot grow unless bonemeal is used.
Leaves do not decay unless broken by the player.
Neither water sources nor rain can hydrate farmland.
Crops do not grow unless bonemeal is used.
[media]
Below y=128 all of these mechanics work perfectly fine.
(could only include screenshot for farmland issue, the others are difficult to prove unless you try them yourself.)
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Thank you for your report. This issue was, however, submitted earlier as MCPE-19448. Please perform a search next time to make sure your bug hasn't already been reported. The parent issue can easily be found by searching for "mcpe unresolved 128".
I'm actually in the full 1.0.5 version but there wasn't an option for that, so I picked the closest.