Torch replaces water or lava

I was playing on a Survival World and then I accidentally placed a torch on a block that was next to a water source. The water was surrounded by some blocks only the bottom being water. I don't know if this is intentional or a bug, but I'm going to assume that this is a bug.

This is the file (it was too large)

https://drive.google.com/file/d/1aPuK2LvS_9vYZEkr_IxYQyIrazWe0acN/view?usp=sharing