The Bug:
Entities, semi-transparent blocks, and blocks with special renderers do not render behind the name tags of sneaking players.
Steps to Reproduce:
Place down a large wall of honey blocks.
Get a player to stand in front of them.
Get the player to sneak and look closely at their nametag.
Take note as to whether or not entities, semi-transparent blocks, and blocks with special renderers render behind the name tags of sneaking players.
Observed Behavior:
Entities, semi-transparent blocks, and blocks with special renderers do not render behind the name tags of sneaking players.
Expected Behavior:
Entities, semi-transparent blocks, and blocks with special renderers would render behind the name tags of sneaking players.
Related issues
is duplicated by
relates to
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Also Banner name when on the edge of the map causes map next to it not to render in that part
[media]
Includes signs and chests.

Also #2: When inside of banner
@unknown, that is MC-167532 and as such I have removed the attachments from your comment from this ticket.

this also happens when behind a painting held by signs

Is this still an issue in 20w22a?

Yes this is still an issue in 20w22a - tested against blocks of water, stained glass, slime, and chests, and against a dropped slimeball entity.
I was however unable to reproduce the issue against horses as pictured, or slime entities, so it seems there's been some improvement.

Hi,
I have the same issue with rendering signs through names tags of sneaking players in 1.16 Pre-release 5.

Does this still happen in 1.16-pre8 or later with Fabulous!?

Yes, this still happens. I don't notice any improvement with Fabulous! graphics on pre8.

Also affects players. In 20w27a.

I also noticed, that the enchantment glint of armor doesn’t render behind it.

Same thing happens with the heads of spectators

Can this issue be increased in priority?
I'd like to request ownership of this ticket since the current reporter has been inactive since October 2019. I'm willing to provide all of the necessary information and will keep this report updated.

Can confirm in release 1.17.

Confirmed in 1.17.1!

Confirmed 1.18

Can confirm 23w44a

Confirmed in 24w37a

I can confirm that this bug is still present in version 24w40a.

At the same time some blocks, items and particles render over the background of nametags/renamed items in item frames/scoreboard... but not over the text (I don't know if this is a bug)
It's really easy to see if you change Text Background to Everywhere and change Text Background Opacity to 100%.
So far the blocks it happen to render over background that I know of are:
Heads and all variants
Glass and glass panes and all variants
Signs and all variants
Hanging signs and all variants
Beds
Banners
Item frames
Bell (only the Bell)
Decorated pots and all variants
Minecarts and all variants
Conduit
Chests and all variants
Beacon (only the ray)
Mobs (only the ones spawned with spawn eggs, weird!)
Dropped items
Particles ❓
Others ❓
There is another thing, when a player is sneaking near other players/nametags, it kinda blinks other nametags at the same time, but I was on a third party server, so it need further testing.