The assumptions:
- "photons always travel at the speed of light"
- "photons (in air) have an energy given be E=hf"
- "of water in their path ... same speed, same frequency"
The conclusion:
"This would require their wavelengths in both mediums to be the same,which is not feasible."
"So where is the discrepancy?"
Admittingly, your reasoning in not incoherent, it is not inconsistent, as speed/velocity is defined by frequency times wavelenght (which may easily be understood).
If velocity changes and frequency does not (your assumptions) that "leaves us with" wavelength being the same in the water.
"Is my initial assumption incorrect?"
As said, your assumptions above as such are true as they refer to the formula.
However, your "initial" assumption must be that velocity in the water is NOT the same, as your question refers to the issue of different velocities of light in different media. "Why do you say" velocity in light is the same in air and in water. It is said to differ.
Thus, it's your final assumption (no pun intended) that lays bare where the discrepancy is: Why should a different wavelength in the medium, the water, "not be feasible".
This statement is consistent with the above: the issue is difference of velocities, thus difference of wavelenght. It is not "feasible" to assume different velocities assuming equal wavelenghts - given same wavelenght (that, as you say, "depends on the source", i.e. not the medium).
The discrepancy your question is about thus may be found in the definition and the usage of the term "speed of light" in that context which your question surprisingly is able to hint at.
"Speed of light in medium" demeans a velocity that is different from "the speed of light in vaccuum" when refering to the simple formulas you mention.
Speaking of "speed of light" must be clear about what of two kinds of speed is being refered to because speed of light named "c" is constant. Photons do only exist if they travel at speed of light. If they do not travel with velocity "c" they do not exist. Their rest mass is zero.
If "the speed" differs with media there is discrepancy in the statements. To safeguard the formulas it must be admitted that
speed of light in medium is a virtual velocity
that refers to the time it takes a photon to travel from point A to point B in a media seen in a straight line ("distance" in terms of velocity).
If you say it is not feasible to have the wavelenght remain the same you are being consistent with these theories, because, taken frequency as constant there is no other reason not to assume a different wavelength given different velocity (v equals frequency times wavelength). In other words: assuming constancy of wavelenght (changing wavelength "not feasible") accepts those explanation of slowing down light in medium or takes them for granted and as a premise.
See related answers at STE that explain how light in medium is slower obeying the constancy of speed of light (slower and same speed at the same time...: Light may be absorbed and reemitted by electrons, the pauses cause the slowing down in time, or, alternatively, there are refractions in differing angles which change the path of the photon and make it longer.
The reason why it must be assumed that c is constant, and "velocity in media" thus should be termed v, not c, lies in photons being defined of mass zero.
This question, in my opinion, legitimately asks about a discrepancy that the theories of differing velocities of light in different media lead to.
Speed of light is not always speed of light. But "C" will always be The constant of light.