Playing ATM 6 mod pack which is using this version, industrial-foregoing-1.16.5-3.2.9.1-fbef27c.jar. The last update has fixed the cow milking with the Rancher, but currently it is not shearing sheep.

Interestingly this is the same version we have in e6 and mine is shearing away:

If you have cows it will keep milking the cow until the tank is filled, then shear the sheep.