The Bug:

Sometimes the terracotta that generates in badlands biomes doesn't match with the color of the y-level it is on, causing the terracotta to generate as regular terracotta where it would normally generate as white, brown, etc. This is a lot more noticeable when the badlands generates as a large hill, which it normally does.

Steps to Reproduce:

  Step 1: Create a new world.
  Step 2: Locate a badlands biome that formed with a decent sized hill.
  Step 3: Look on the side of the hill to notice that some pieces of terracotta are not the color they should be. Note: This bug doesn't happen on every badlands hill, but it is quite common.

Observed Results:
The terracotta colors are very broken up and ugly because some of terracotta isn't generating as the color it should be, even along the same y-level.

Expected Results:
The terracotta color layers generate as a nice, clean layer with no interruptions in the color along the same y-level.

Notes:
While I haven't looked at the game's code, I have hypothesized two reason to why this might happen. The first possible reason is that the code that applies the colors to the terracotta layers is not being properly applied to all the terracotta blocks, causing some to retain their generic colors. The second possible reason is that the terracotta layers are generating in the wrong places and are overlapping, which may also explain why this bug tends to happen in large patches. Nevertheless, this bug makes badlands look far less appealing and colorful and also makes it harder to collect a certain color of terracotta.