Entities more than 70 blocks away are not visible in spyglass

Note: the LOD for distant blocks being unaffected by the spyglass is tracked at MCPE-126338. This report raises the same issue for entities. The only difference is that entities have a fixed render distance of the lesser of 70 blocks or simulated chunk range, which is not affected by the render distance video setting.

Steps to reproduce

1. Spawn a villager inside a glass box.
2. Move 75 blocks away straight along any axis (X, Y, or Z).
3. Use a spyglass to look at the glass box.

Expected result

You see the villager. 75 blocks is within the shortest available render distance in the game of 5 chunks, so you can still see the glass.

Observed result

You cannot see the villager, only the glass box.

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When using a spy glass blocks/mobs become invisible or are not fully rendered if the player is 70 blocks away.