Entities usually look at the player when near it, but when the "Short Sneaking" option is toggled, entities can't track players' cameras correctly while crouching. It may be difficult to notice this issue in some entities, so the attached screenshots are only the two most evident cases. This error also affects other platforms like Xbox despite the screenshots being only from mobile.
To reproduce/test this issue by yourself, you must:
- Toggle the "Short Sneaking" option in the world settings;
- Open the world and find/spawn an entity;
- Crouch close to it.
If the misalignment is not obvious, you should notice that the entity's head won't move or tilt, indicating that it has not recalculated the position of the player's camera and is looking where the camera would have been if the player were standing instead of looking directly to it.
Update: There was some kind of workaround implemented in versions forward from 1.20.0.24 but it has not been revealed. The camera is still not completely centered but it is much better than before.