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Yep, you're right. I was using an FXPAK Pro in SGB2 mode. I converted my save an tried in on an emulator and it worked as intended. All bushes were effected on the flash cart.
Hey, not sure if this has been reported but it seems like you can walk through cuttable bushes if you just keep walking into them. I'm playing the latest version of Lite on a Super Game Boy 2.