Bug: Spawned inside solid block that was over 2 stacked water blocks (not visible to player). All other locations around bed met spawn criteria. Bed was situated such that solid block was the NW point i.e. first choice for spawn.

Correct Action: Game should have chosen next best block as spawn point. 

Steps to recreate: 

1. Place bed on solid blocks that meet spawn point criteria.
2. Place water blocks below bed elevation at the NW spawn point.
3. Place solid block over water blocks as to negate the spawn point. 
4. Sleep in bed
5. Wake up inside solid block at NW corner.
6. Suffocate and die.