Can't see player name, even though I have it on in settings

So basically when I play on every server or in a regular world, I can't see a players "in-game name" which is the gamertag above someone's name when a block is blocking my way from seeing them. This has never happened before. 

It's frustrating because I can't see where my friends are. For example, I can't protect them from mobs or players attacking because I do not know where they are. The only way I can see their in-game tag is if I'm directly right in front of them and there is no block on the way.