Interact and damage do not register to entity's entire collision box by player

Summary:
When a player interacts with or damages an entity, the result is based on max distance from the base of the collision box, rather than the entire collision box

Verification Build:
1.17.34

Regression Builds:
N/A

Impact:
This is currently affecting a project we are working on

Repro Steps:
1. Download test world
2. Type `/bounds`
3. Notice the collision box scales to the entity height
4. Shoot bow as top of entity
4. Notice the entity gets damaged
5. In adventure/survival mode, standing on the lime glass allows interact and damage to register, regardless of looking up
6. In adventure/survival mode, standing on the red glass disallows interact and damage to register, regardless of looking down
7. In creative mode, standing on the blue glass disallows interact and damage register
8. Entity using `custom_hit_test` to south yields same result

Observed Results:
Player cannot cannot interact or damage entity at 5.5 blocks from entity's collision box base regardless of size of collision box. Projectiles, however will register to height of the collision box height.

Expected Results:
Interact and damage should register to entire collision box area

Video Demo:
https://www.youtube.com/watch?v=Ja3HCiZ1vqI