After updating to version 1.17.40, I noticed that the sheep in my automated wool farm were not sheared. After checking that shears were in all of the dispensers, I watched the sheep for a bit.

I found that after the sheep eat the grass, the grass block does not change to a dirt block, and the animation the sheep usually perform after eating (a poofing effect is the best description I can think of), does not play, nor does the sound effect that accompanies it.

I wondered if it were only the sheep in my farm, and wandered 500+ blocks away to find another sheep. I found that the same thing was happening to the sheep there, the grass block did not change to dirt, there was no poofing animation, and no sound effect.