Steps to Reproduce:
Place water inside of a 1x1 glass cage (specifically glass)
Waterlog anything inside of that space (stairs and slabs are harder to notice)
Observed Results:
The water uses the texture of the waterlogged block.
Expected Results:
The water displays the same texture as always.
Screenshots/Videos attached: Yes
Notes: It is also direction based, it seems to happen only when the glass is placed on the water's west side. See attached screenshot.
Confirmed in Windows 10 1.13.0.17 Beta. Attached an additional screenshot showing that there's no obvious explanation for which blocks are or aren't affected, but the issue seems to be constant for any given block position.