Armor stands can't be placed in a 1 block high space if the EntityTag "Small:1b" is set

The bug

Armor stand items with Small:1b set in their EntityTag cannot be in 1 block high spaces.

How to reproduce

1. Give yourself an armor stand item

   /give @s armor_stand{EntityTag:{Small:1b}}
   

2. Try to place it in a 1 block high space