[MC-166450] Armor stands with CustomNameVisible always show name regardless of nametagVisibility team option

When an armor stand has CustomNameVisible set to true:

When an armor stand is added to a team1 and then the nametagVisibility modifier is set to hideForOtherTeams, team2 can still see the team1 nametag.

When an armor stand has CustomNameVisible set to false:

The name isn't visible at all, regardless of team. This also applies when seeFriendlyInvisibles is set to true, the name is not visible.

Linked issues

I can confirm, 1.17.1.

Seems to affect other entities (like snowballs), not just armour stands

Can confirm in 26.3 Snapshot 3

Have team1 hide their name tags from the other team:

/team modify team1 nametagVisibility hideForOtherTeams

Summon the armor stand with a visible name

/summon armor_stand ~ ~ ~ {CustomName:'{"text":"TEST"}',CustomNameVisible:1b}

Add the armor stand to team1

/team join team1 @e[type=armor_stand,limit=1,sort=nearest]