When I shear the sheep they do not change their appearance, they still appear to be un-sheared. I am able to reproduce using:

1. World template Neon District RTX with only the world and default resource packs (ray tracing on)
2. Standard world with vanilla resource pack and ray tracing off
3. Standard world with the NVIDIA HD foundational resource pack and ray tracing on

Added a screenshot of right after shearing where you can see the wool block dropping and the sheep remains the same.