1. Tame a wolf on a server. (I named my wolf and colored the color. Also I walked/went swimming with my wolf a lot.)
2. Swim with the dog.
3. Look at the dogs head and notice it does not have the "cute eyes" look.
4. You can only see the non-tamed wolf texture when the wolf (tamed) is swimming, or on land in a Deep Ocean Biome.
That is how I got this bug.