This is something Epic has backlogged since back in UE4.
Unreal Engine Issues and Bug Tracker (UE-112595)
In case of core UE this seems “reasonable” as Epic themselves seem to favor usage of VSM in UE5 and it does have correct shadowing implementation for Single Layer Water surfaces.
In case of RTXDI this is problematic as any surface using that shader (eg open world games using default water plugin) will suddenly lose all shadowing on water surfaces.