As the title suggests, a sky volume placed close enough (most notably, not intersecting) to a water volume causes an erroneous ‘sweet spot’ where all the lighting takes on the underwater color settings.
Place a Sky Volume near a water volume (presumably with considerable size to both), Third and First person camera at specific but easily noticed angles causes Underwater colors to blend or takeover the sky volume colors.
Changes from Underwater colors to not effect Sky colors, unless underwater of course.
Sorry if the description was awkward! The bug might also be specifically happening due to a sky volume feature such as fog or sky lighting changes being toggled on, I hadn’t extensively tested what specifically causes it about this.
The water and Sky volumes were a decent gap apart, not too far apart that the sky volume stopped applying before you hit the water, but more than the standard player model height apart.
Pictures and video provided to try to example it better.