yeah it's in our survival server and we tested in singleplayer creative, didn't work either way. interestingly enough, if you put a hopper minecart, it would pick up some items for like a frame and then the items would disappear even if lava wasn't there. We get loot from cows and stuff so yeah mobloot is on
just tried it again, guess it's not really a bug, but you basically have to remove the lava the exact moment it's put out. idk if they changed how items dropped from mobs but ik this design worked in other versions so it is annoying that it's harder to kill chickens with lava. it should be noted that that should be changed