See image: https://imgur.com/a/EswrsmH

What's the problem?

If I'd have to describe it: blocks act like they are water repellent. The texture of water is applied on the sides. You can clearly see it on the image. Normal pillars in the background. Camouflaged blocks in the foreground.

If I were to guess this may have to do with your shaders. Can you reproduce this with just MI? If not, what shaders and mods are you using?

Also happens without shaders: https://imgur.com/a/RifPcVa
I'm playing on the Craftoria modpack 1.17.3 (MC 1.21.1) but it has the latest MI (2.2.34).

Not sure I can fix this. I need to enable canOcclude for pipes for fluid rendering to work, but if I do that I break the ability to make the camouflage transparent based on a global value. :(

If it is of any help, I'm currently using Cable Facades as a fix.
It is not perfect in the ease of use department but can render fine under water. Maybe it can give some idea on how to do this?
Pictured, left are cable facades, right is MI's camouflage: https://imgur.com/a/5LwXHVC