The dogs do transform into undead if they died while swimming as shown in the image below. But they immediately die and the mutated vultures stay there walking on top of the sea. (And btw in the last update Red and Blue hounds were not supposed to be mutable and it mutated anyway).
Steps to Reproduce
1. Hound dies on top of the sea (does not matter type)
2. Mutated Vultures come to eat the corpse
3. Mutated hound immediately dies after mutating.


A developer has marked this issue as fixed. This means that the issue has been addressed in the current development build and will likely be in the next update.
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