When mobs are set on fire with a lava block with a dispenser, they do not catch on fire. So far I have discovered that this is the case with cows and chickens, but possibly more.
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However, this issue has been closed as a Duplicate of MCPE-31481
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Hello. I had a similar issue. It was fixed by Killerbeenl's post suggestion - remove the block above the lava. My chickens stopped suffocating and began to burn up again.