Entities such as armor stands, item frames, and even mobs would also disappear. The only way I could get them to appear again is by reloading the world, which wouldn't work if I loaded into the world within the chunk that those entities were in. Then if I left that area and came back to it, they would disappear again. Blocks cannot be placed inside the spaces the entity was in.

This may affect players aswell, my friends have noted on a LAN server that I would occasionally become invisible, but my name and any items I was wearing or holding were still visible.