When falls on a waterlogged block like waterlogged bottom slab, or waterlogged chest, concrete powder will replace the waterlogged block and convert to concrete block.

Check the attachment for details.

The powder can destroy all type of waterlogged block including ender chest and conduit, only if as long as the waterlogged block's hitbox is lower than 1 meter.

Maybe the comcrete powder should just stop falling inside the waterlogged block and turn into block above the waterlogged block. Destroy the waterlogged block doesn't make sense.