The Bug:

Transparent blocks at render distance can be seen through entity nametag backgrounds.

Please note that this is related to MC-202197 and not the same. MC-202197 states that entity nametag backgrounds render behind transparent blocks while this ticket is talking about how transparent blocks at render distance can be seen through entity nametag backgrounds. Please also note that this issue occurs whilst using any graphics settings.

Steps to Reproduce:

1. Build the setup as shown in the attachment below or something similar. setup.png
2. Travel away from the transparent blocks until they are just barely hidden by the fog.
3. Summon an entity with a custom name by using the command provided below.

   /summon minecraft:evoker ~ ~ ~ {CustomName:"\"MC-235986\"",CustomNameVisible:1b,NoAI:1b,Silent:1b}

4. Look closely in the direction of the transparent blocks through the nametag of the entity you just summoned.
5. Take note as to whether or not transparent blocks at render distance can be seen through entity nametag backgrounds.

Observed Behavior:

Transparent blocks at render distance can be seen through entity nametag backgrounds.

Expected Behavior:

Transparent blocks at render distance would not be able to be seen through entity nametag backgrounds.