How to reproduce:
1. Open the attached “IN-108732” project
2. Open the “Island” Scene
3. Ensure Transparent Depth Prepass is enabled (Edit > Project Settings > Quality > HDRP > Rendering > Transparent Depth Prepass)
4. Open the Scene View
5. Observe the result

Expected result: The water renders without artifacts
Actual result: The water renders with blocky artifacts

Reproducible with: 2023.3.0b5, 6000.0.54f1, 6000.1.13f1, 6000.2.0b11, 6000.3.0a3
Could not test with: 2023.1.0a1 (Project crashes upon opening), 2023.3.0b4 (Could not fix water rendering issues)

Reproduced on: Windows 11
Not reproduced on: No other environment tested

Note: The issue can be seen easier by moving around in the Scene view