I have many rooms where there is lava which is covered by glass than stone on either side of it. Above the stone blocks, I have wool for decoration. When transferring to the BTU update all of the wool burns now which it previously didn't I can't tell if this is a NEW "feature" or a bug...
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As I interpret what you wrote, the wool blocks share an edge with the lava block, so I tested that arrangement.
Confirmed in Windows 10 for 1.2.6.55. I suspect this behavior is intentional, though.
I assumed it was intentional i have now changed all my floors to not include lava since they all burn up now.
I noticed something like this today with a fireplace and some wooden half slabs.