Samsung Galaxy S4 Android 5.0.1 MCPE 0.12.3
This affects tamed ocelots (cats) too. Below I talk about wolves/dogs because over generalizing is confusing.
What happened: I focused on a tamed wolf when I was holding a fishing rod that had been cast and the action button that appeared said "Fish". Clicking it retrieved by bobber (as expected) but it also changed my tamed wolf from sitting/standing (not expected, and a bug).
What I expect to happen: I expected to retrieve my bobber. To change my tamed wolf's sit/stand position, I expected to have to change my current item away from the fishing rod to something that does not have an associated action button. This would work the same as when I have food in hand and the action item displays "Feed" which overrides the action sit/stand when I am focused on my tamed wolf.
Confirmed in creative & survival modes with spilt controls on or off.
Linked issues
relates to
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I can confirm this on my Samsung Galaxy Note 3. Android 5.0 Version: 0.11.1

Does this bug still appear in 0.12.1? If so please respond.

Does this bug still appear in 0.12.1? If so please respond.

Confirmed (in a way) on Samsung Galaxy S4 Android 5.0.1 MCPE 0.12.3.
Pressing fish when the bobber has not been cast works as expected (casts it into your dog, hooking it and hurting it)
However, pressing fish while focusing on your dog when the rod has been cast makes the dog sit/stand as well as retrieving the bobber. I expected that pressing fish while focusing on your dog would retrieve the bobber and not change the sit/stand state of the dog.

Confirmed (in a way) on Samsung Galaxy S4 Android 5.0.1 MCPE 0.12.3.
Pressing fish when the bobber has not been cast works as expected (casts it into your dog, hooking it and hurting it)
However, pressing fish while focusing on your dog when the rod has been cast makes the dog sit/stand as well as retrieving the bobber. I expected that pressing fish while focusing on your dog would retrieve the bobber and not change the sit/stand state of the dog.

Fixed in 0.13.0

Fixed in 0.13.0
I can confirm this on my Samsung Galaxy Note 3. Android 5.0 Version: 0.11.1