When I place down the coral fan, sea pickle, sea grass or kelp the block immediately got distorted. When I place down coral there is an air space.
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Thank you for your report!
However, this issue has been closed as a Duplicate of MCPE-32920.
Your additional information and observations are very useful, so if you can add them to the comments section of the parent issue it would be appreciated.
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It needs to be still water (water source block), not flowing water