https://youtu.be/dctZbQp2Fqc

Video of the bug.

baritone will consistently not know how to deal with being stuck in water & lock up.

I was using the sel ca command to mine out a rectangular area, when it got stuck. the bot would make no attempt to stay above the surface, unsure if it would've drowned itself.

block reach limited to 2 blocks, layer order = true, digging in layers, all other settings default.

This is the builder having trouble with water, which is expected. You'll have to remove the water yourself to make it work.