NPC names appear all the time

In the 1.18.30 update, NPC names will appear all the time, even through walls. Previously, NPC names worked more like name-tagged mobs where they would appear when you looked at an NPC. Now they work more like player names.

Steps to Reproduce:

1. Spawn an NPC (/summon npc)
2. Look away from the NPC

Observed Results:
The NPC's name still appears.

Expected Results:
The NPC's name should only appear when looking at the NPC.

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I once paid tribute to some people who died. Until today, I went to play Minecraft in this new version and,right when I enter my world, I come across this bug where it is possible to see the name of the NPCs through the floor that separates the 1st and 2nd floor.