Some behaviors that occur because of this glitch
Foxes no longer trust the player that bred them
Endermen and bees are no longer angry at the player that angered them. (This may be intentional as the server in a single-player world restarts when the player saves and quits to the title screen).
Tamed dogs and cats that are sitting stay sitting, even when the player that tamed them right-clicks on them.
Villagers also no longer give discounts to players that unlocked their master-level trades or cured them.
The skin for the player changes randomly from Alex to Steve and back.
It seems as if Minecraft is not saving information related to the level.dat file after the engine is closed; information is temporarily stored if the launcher remains open.
I reproduced this bug on Snapshot 20w22a. where a layer of water generated at y=59 under a floating village.
I suspect this is because the level.dat is reset upon launch.
I'm pretty sure I have experienced this too: I think that information stored in the level.dat file (timer, position, inventory, etc) is reset, while other information (render distance, structures, etc.) are not. In addition, I believe this occurs for all the pre-releases and release candidates.
If one looks in the "playerdata" folder in the demo version of the game, there will be multiple pairs of .dat and .dat_old files for different UUIDs, showing that the changing UUIDs are the root cause of the problem.