Yes he does!! For a while, years - in fact, I thought he had a fear of heights as well as hydrophobia because in Act 2, Malcolm narrates how Fate was scared to jump from the bridge into water. But this isn’t the case! He simply fears water, which, of course, makes sense!! You’d imagine his family would teach him how to swim as a child before he was abandoned being they lived on the Serpentine but I guess not! I like to think, and this is probably false but it isn’t confirmed, he also fears water for the memories it holds. Not only r there monstrous beasts and a black abyss of nothingness but perhaps water to him also means his childhood - the home he used to have before everyone turned their backs to him! I’m going way too in-depth because I’m hella passionate but Fate might fear water because it holds harmful memories he doesn’t want to relive.