this has been fixed in the latest snapshot
Can confirm
This also applies to the Resin Brick Stairs and Resin Brick Walls
Pigs converted into Zombified Piglin drop raw porkchop
Villagers converted into Witches drop nothing
Skeletons converted into Strays drop regular arrows instead of slowness arrows
Seems to be an issue that when a mob is converted into another mob, it keeps the same loot table as the first mob.
Can Confirm. I have the same issue. However, the blurriness did go away when I set Anisotropic filtering to 8x.