It seems that arrange_panels_and_breaks introduces an ltx:block wrapper around things including ltx:figure which is then invalid. Turned up when experimenting with #2708, if I tweak the acmart test by adding actual images to the subfigures:
\documentclass[acmsmall]{acmart}
\usepackage{graphicx}
\usepackage{subfigure}
\begin{document}
\begin{figure}
\subfigure[Fly 1]{\includegraphics[alt={Bug1}]{example-a}}
\subfigure[Fly 2]{\includegraphics[alt={Bug2}]{example-b}}
\caption{caption text}
\label{fig:one}
\Description[Fly 1 and Fly 2 look identical]{Fly 1 and fly 2 comparison shows identical length, wingspan, and overall bodily structure.}
\end{figure}
\end{document}
It seems that
arrange_panels_and_breaksintroduces anltx:blockwrapper around things includingltx:figurewhich is then invalid. Turned up when experimenting with #2708, if I tweak the acmart test by adding actual images to the subfigures: