if I use item_fluid_transform to make recipe with "water" it works but when I switch to "flowing_water" it does not work.
Is there any way to use flowing water?
I have tried "minecraft:flowing_water" and fluid tag "water"

If you use a recipe with water that doesn't consume the fluid, just using "water" will also accept flowing water, however, if the fluid is consumed, I figured it would have been too cheaty to allow for people to use the flowing variant (since that automatically refills), so that's by design

With the 3.1.1 version of the mod this behaviour will not happen as the fluid will never pass the commented out line if not a source, just need to remove || !state.isSource() as shown

    public boolean canCraft(List<ItemEntity> entities, FluidState state) {
        // if (!fluid.test(state.getFluid()) || !state.isSource()) return false;
        if (!fluid.test(state.getFluid())) return false;
        if (consumeFluid > 0 && !state.isSource()) return false;

        return compareStacks(entities, inputs);
    }

after this, i still need to explicitly put "flowing_water" in recipe for it to work, just "water" did not work