Yep, Once I delete the passable A6 blocks, I recompile the level and it works. Bring them back in, recompile and it crashes. Only way to prevent the crash is to recompile the passable blocks as A7 meshs (in which they are not detected as water entities, so that defeats the purpose).
I'm only reporting it because A7 is still supposed to support the A6 maps, where as in A8 you must use terrain, unless this has now changed but I didn't see it listed in the beta / bugs / newfeatures, ect.
(on a side note, I managed to make terrain behave as water the way I wanted, I'm just reporting the crash).
Thanks though

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