Can confirm on windows 10 1.2.1 has the same issue. Using the workaround with disabling the smooth lighting for now although it doesn't look the best. At least I can see now.
I have the same issue, but it seems only one chuck is doing this. I've lit the area up, but there are a ton of passive and hostile mobs that still spawn. I completely cleared out the chunk a couple in game days ago and now it's full. I've attached a screenshot to show what I mean. (mobs.png)
This seems to be a problem with efficiency enchantment. I have efficiency 5 on the shovel that doesn't work. If I use a shovel without the enchantment it's fine. I have the same issue with a pickaxe with efficiency 5, but only when mining netherack. It appears to be something with a tool being too efficient for what it's trying to remove. Something like it does it too fast so it doesn't do the next one.
I'm seeing the same thing on Windows 10 edition v1.1.5
I see the same issue running 0.16.1 on iOS 10.1.1. The torches are in the wrong place and it doesn't show the 3 stone needed.
That was it. Worked just fine when holding. I didn't know they changed that.
I am playing on Windows 10 1.2.2 and I had 24 dyed sheep all named. I logged back in today and not a single sheep still has a name. This is playing on a realm world.