Once sheared, a sheep still retains its wool and you are unable to visually see it has been sheered.
Unsure if this has been reported yet, but I couldn't find one specifically for this incident itself, so I made an individual report for it. My sincere apologies if this is already known.
Thank you for your report!
We're actually already tracking this issue at MCPE-63188, so I resolved and linked this ticket as a duplicate.
This issue has been fixed in 1.16.0.53 Beta. Try checking for updates for Minecraft in the Microsoft Store.
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