Minecraft squid do not spawn when Valleycraft is installed (Fabric 2.2.1). I have removed all entity generating mods in my modpack and confirmed squid are available and added ONLY Valleycraft and they do not spawn.

There's nowhere in code that disables squid from spawning. So please do a binary search of all the mods. It means removing half of the mods and seeing if the issue still occurs. If it does, remove half of the remaining mods and check again. Keep removing half and testing until the squid starts spawning again. Once you know which batch of mods contains the one that stopped squid from spawning, test those one at a time.

I literally removed Valleycraft and they spawn again, add Valleycraft back and they stop spawning. I will check to see if it is two mods causing this.

Ah! I'm sorry. The squid does spawn on my end. I simply use the command /tp @e[type=minecraft:squid] @p in-game. I honestly don't know I can fix it if squid does spawn on my end. If it doesn't spawn, that's something I can investigate.