Didn't happen on 1.4.3. I've also reported this to the LuiAFK devs.

Sucking up water in an area with LuiAFK's combo rod highlights the tiles that surrounded that liquid, when Fancy Lighting's "smooth lighting" config is enabled. Seems to happen regardless of my other settings; only important one is "smooth lighting". Even after the tiles / walls are removed there is still light present. The light disappears when I reload the world.

In one year I haven't found any incompatibilities or oddities between Fancy Lighting and another mod, and this was not happening on 1.4.3. so either LuiAFK changed something about how combo rod liquid functions interact with light, or Fancy Lighting changed something.

Miningcrack says LuiAFK to their knowledge is not even touching lighting stuff with the liquid functions.

TML v2023.6.25.31
T v1.4.4.9
LuiAFK Reborn v1.2.1
Fancy Lighting v0.7.0

Example of lit tiles after sucking up water with combo rod.
https://i.imgur.com/wShkZbn.png