Happy to report this issue was fixed in the next snapshot.
So there’s a change to how Mending functions? It does work if I equip the item in my off-hand. It did not work for items in my inventory or not selected in my hotbar.
Also, my villagers don’t seem nervous/in danger. Even my iron farm villagers seemed rather chill.
Destroying and replacing the workstations and beds works for me. Rather annoying since I have so many. Apparently they see them as claimed already. In my village of ~60 villagers I had 1 butcher that was sleeping and 2 butchers working before I started replacing stuff.
To reproduce:
Board a happy ghast and fly around.
Get off the happy ghast.
Walk around. You will see the POV move similar to how it does when on the happy ghast.
It is expected that the POV movement returns to the sharper walking camera, but it remains as the floaty happy ghast camera.
To reproduce go near anywhere that villagers sleep at night. You will see them walk while lying down as shown in the video clip posted by Damian. ( I tried to upload a screenshot but it always failed.)
Was a bug in 26.1 snap3, but was fixed in snap4.