Minecraft v1.16.4
Forge v35.1.13
C&B v0.2.8

Is it possible to add waterlogging to bits, printers, & bit storage? This way placing a single bit won't just delete the water it is placed in. It would also allow for interesting underwater decorations.

Water logging the bits is currently not under consideration, since you can use water bits to reach the same effect.
With regards to the machines I might add this, but it is under a low level of priority.