I did search before reporting, but I thought I should still report the issue since it was occurring in another version. I'll keep that in mind the next time I may report an issue, thanks for the quick response!
After further exploration, I discovered that this issue only targeted SOME sheep. Sheep near the spawn point were targeted while sheep located on a farther side of the island weren't and behave perfectly fine.
Another thing, mob's movement in general seem to stutter.
I agree. The biomes also don't transition well, unlike the nether atmosphere ironically, and don't connect properly. Nether wastes cut through every soul sand valley and warped forest; I'd assume that it does interrupt the crimson forest, but I haven't found one of 'em yet in my short exploration in the beta.