In Minecraft 1.8.8 you can plant sugarcane underwater if you do it near the surface (because of the light, i guess); you can't do it deeper than that but you don't lose the sugarcane when you try. Also you can plant cactus underwater with no problem. I just tested to be sure.
The game crashed for me too until I change the Java version for the one included with the game. I was using OpenJDK 14 + OpenJ9 on macOS Catalina.
Edit: sorry, not the same bug. In my case it crash before even the game itselft starts