What it should be doing :
Dispense the witch water on the ground

What it does instead:
Dispenses the bucket to the ground

I was trying to use a redstone clock to dispense witch water to turn my mob farm into their counter parts (for wither skulls mainly) as ive done before in atm volcano block but it doesnt appear to work the same way, would appreciate a fix for it!

Playing on ATM9: To The Sky 1.0.4

Yep that's a bug. In the meantime there might be a fluid placer block you could use instead