Suspicious sand has an "inventory" that contains a single item that will drop when you brush it. To change the item inside, use the following command:
/data modify block x y z item.id set value "minecraft:cookie"
This will change the item in the suspicious sand at (x, y, z) to a cookie (or whatever item you want). You can see that this worked by the item slowly emerging from the sand as you brush it.
Suspicious sand from the creative inventory just has no item inside. You can also put the suspicious sand loot table using /data modify block xyz loot_table set value "minecraft:archaeology/desert_pyramid" (or desert_well instead of desert_pyramid).
Dispensers cannot waterlog them either. If you waterlog one using a debug stick, water does not flow out of its tile space, but it can still be used to create an infinite water source with another water source (2 waterlogged pots do not create an infinite water source since they do not flow).
The azalea trees are not a bug. They indicate that there is a lush cave beneath.
This also works by placing two cobwebs underneath. The item that drops will have no loot table, though.