Names are greyed out in the tab menu on servers in 20w17a. (Like how they normally are in spectator mode) However this is now happening in any gamemode.
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Please provide a screenshot of this occurring, please have the F3 debug screen open while taking the screenshot.
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Spectator mode makes names go italic too while this bug does not. Colors are also affected by this glitch (as I mentioned in my thread) and I believe this has to do with the greyed out area caused by tab to be in front of the text and that this could be of a similar nature to the glitch with text from chat going behind the HUD.