Can reproduce in 1.20.4 and it's because Mob.clearRestriction() is never called when the wolf is unleashed, resulting in its AI treating the entity as if it were still restricted to its last leashed position.
Can reproduce in 1.20.4 and it's because Mob.clearRestriction() is never called when the wolf is unleashed, resulting in its AI treating the entity as if it were still restricted to its last leashed position.