When placing a water bucket at world height in the nether (or other ultra warm dimension) the water evaporates and the bucket goes empty, will showing the message "Height limit for building is 255 blocks". I would expect that the water will not evaporate and remain in the bucket will showing the height limit message.

How to reproduce:

Join / Create a world and go to the nether

Go all the way up to the world height and place a block (/setblock ~ 255 ~ stone)

Get a bucket and make sure you are in survival mode

Now place the bucket on the top of the stone block (at height 256)