I'm creating a datapack that uses text_display that sits on villagers, and I accidentally discovered that as long as I don't use the bell everything is fine, but when I use the bell the villagers stop moving, they can turn and look and interact with the player, but they don't move at all. And when villagers have some other entity on them, they do not collide with each other.

I've been testing a bit more and it seems to only work at the bell range.