Description
In villages generated in an underwater area (if part of the village extends into a lake/river/ocean), anything that has a waterlogged variant (slabs, stairs, lanterns etc.) will be waterlogged.

To Reproduce

1. Generate a new world
2. Find a village that is partially submerged
3. Observe this issue

Expected behavior
Regular variants of blocks should generate.

Mod version:
1.2.7

Fabric API version:
0.36.0

Minecraft version:
1.17

Upgrade to 1.3.

This is one of the things I majorly fixed in that verison. Which did release days before this issue was posted.