Observer on sticky piston is not triggering on retraction with wooden button

Observed Behavior:

An Observer is pushed by a Sticky Piston activated by a Wooden Button into another Observer forming a Clock and then retracts on the Pulse end. The pushed Observer is facing a solid Block after Retraction with a Redstone Dust behind it. The Dust is not powered.

Expected Behavior:

The Redstone Dust should be powered from the Observer on Retraction.

Testcases:

• Tested in 24w07a (Bug found)
• Testet in 1.20.4 (seems to be working)
• The Bug is directional as far as i can tell