What I expected to happen:

The water would start flowing when blocks were broken.

What actually happened:

The water would not flow unless the chunks are reloaded using F3+A or reloading the world, even when the chunk the water was in, or adjacent chunks were updated.

Seed: 68778607

Attached are screenshots showing the F3 menu, as well as evidence of the water not updating, even when placed manually.

UPDATE: The bug seems to be inconsistent with what chunks it affects and when, as I don't seem to be able to replicate it consistently