The sign GUI doesn't close when you get too far away from the said sign

The Bug:

The sign GUI doesn't close when you get too far away from the said sign.

Please note that this affects both the sign GUI and the hanging sign GUI.

Steps to Reproduce:

1. Enter a singleplayer world and open it to LAN.

2. Build the setup as shown in the attachment below.

1. Stand on top of the diamond block, jump off the tower, and quickly place a sign as you're falling.

2. Take note as to whether or not the sign GUI closes when you get too far away from the said sign.

Observed Behavior:

The sign GUI doesn't close.

Expected Behavior:

The sign GUI would close.