Egg hatched underwater, I noticed one of my ranches wasn't full. Ordered an alert-priority wrangling and delivery. Upon delivery, (lowest-right side proper room, left corner of room) hatchling still displays "Drowining" red warning tag. Save is from just when I noticed the issue. Similar issue reported at: this post for spaced-out early access.
Edit: exiting to menu and reloading file lead to the effected hatch displaying the death animation and dropping meat.
hatch (or trap?) Hatchling Egg (any drown-able critter?) to initiate "Drowning" state. Wrangle hatchling (critter?) and deliver to a critter drop off.