Summary:
When the player is on fire, blocks and most items clip through the first-person fire overlay when held. This bug appears to occur only on platforms with the Render Dragon engine.

Steps to Reproduce:

1. Set the camera perspective to first-person
2. Stand in lava or fire
3. Hold a block or item

Observed Results:
Blocks and items clip through the fire overlay.

Expected Results:
Blocks and items should not clip through the fire overlay.

Notes:
Bows, crossbows, tridents, spyglasses, fishing rods, carrots/warped fungi on sticks, and the player's hand are not affected by this bug. This is because they render behind the fire overlay, so one way of fixing this bug would be to make all blocks and items render behind the fire overlay like in Java Edition.

Screenshots:
With Render Dragon:

Without Render Dragon: