Nametag backgrounds are not visible in front of tile entity blocks

Nametag's background from players, named items and mobs appear behind tile entity blocks.

What I expected to happen was....

The nametag's background to be visible regardless of being in front of tile entity blocks

What actually happened was....

Part of the nametag's background that was in front of a tile entity block isn't rendered

Steps to reproduce....

1. Get a named item in an item frame / named mob / another player near a tile entity block (ex: beds, chests, ender chests, shulker boxes or signs)

2. Rotate the camera as to place the nametag in front of the tile entity block

3. →❌  The part of the nametag's background that is in front of the tile entity block will be rendered behind it

From what I have tested, this happens on all graphics settings (fast, fancy and fabulous).