The font of a sneaking player's nametag reduces in opacity depending on the side of the screen that they're stood on for other players.
Steps to Reproduce:
Get two players and label them, "Player A" and "Player B".
Get "Player A" to stand still and have them look closely at "Player B"'s nametag.
Get "Player B" to move to the left side of "Player A"'s screen whilst sneaking.
Get "Player B" to move to the right side of "Player A"'s screen whilst sneaking.
Observed Behavior:
The font of a sneaking player's nametag reduces in opacity depending on the side of the screen that they're stood on for other players.
Expected Behavior:
The font of a sneaking player's nametag would not reduce in opacity regardless of the side of the screen that they're stood on for other players.
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WAI

I don't see how this is WAI; the tag is supposed to be harder to see/more transparent when crouching, but I'd expect that to apply to all letters equally.
Incidentally, MC-172524 seems like the same thing as this issue, but was supposed to have been fixed in 20w19a. Are you able to reproduce this issue in 20w19a, or has it regressed in a version since then? Does changing your graphics settings make a difference?

Can this bug reproduce in 1.15.2 or only 1.16 rc1?
It did exist in 1.15.2, see MC-172524.
Does this also happen if graphics are set to "Fabulous"?
Can confirm in 1.18.1.
Can confirm in 1.18.2.
Can confirm in 1.19.
Can confirm in 1.19.1.
Can confirm in 1.19.2.
Can confirm in 22w44a. Possibly relates to MC-257183.

Can confirm in 1.19.3 and 23w04a.

Can confirm in 1.19.4

In PvP settings the players nametag showing through blocks is an easy way to be detected and killed, the ability to sneak and reduce the visibility of the name tag was an intended feature which PvP players used to, well, sneak up on people. I am hoping the applied fix does not break this feature.

The issue as I understand it is that individual letters don't show up depending on where they are even when there's direct line of sight to the player. The whole name tag not being visible when the player is behind blocks is separate behavior (which seems unlikely to be changed by this fix).
Perhaps there's a situation where part of the nametag is visible but other parts are behind blocks that might be affected (or a long name tag peeks through the corner of two blocks, revealing a player that otherwise is hidden), but those seem like much more niche situations.