Having the same problem i hope they resolve it soon im paying to not even play 😞
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On Xbox One X this is happening both with the vendor and enhanced texture packs.
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Player2, 3, 4 all see opaque water but player 1 has no issue.
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Pretty obstructive for underwater play especially in terms of ruins and combatting Drowned in a split screen game of 4.
Can confirm on 1.20.1.
Why is 1.7 listed under fix versions?