It will spawn in the mushroom biom and when you shear it you will get a block of mushroom so, you do not need to use a silk touch axe anymore to collect mushroom blocks. It could be a brown or red mushrooms sheep.
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Please read the pinned post on creating new biomes and dimensions. Remember that individual items, mobs, and structures should still go in their own categories - this is not a category for entire updates.
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