Tslat

Still present in 1.9.2

Apologies for lack of detail, in a bit of a rush at the moment.

Reproduce by going into single player, enabling cheats.
Put on the Australian English translation pack.
Type in any random non-existant command (e.g. /catfish)

In what way is this offensive?

It mimics classic Australian sterotypical language, just as you would expect it to

This is still an issue with 1.6.2 (the latest release).
I would update the version myself, but I'm unsure how to

Also happens with levers and buttons.
If a block is directly below the item on the wall, the gravel/sand will turn into an entity as normal.