This is a bug. Items, mobs, entities, etc are occluded by a sneaking player's name tag. Seems to be GPU independent as I've also experienced this bug on NVidia. Additionally, it also affects on every graphic setting: fast, fancy and fabulous. This bug applies, but isn't limited to:
Items held in hand and worn on head
Piglins, pigs, glow squids, cows, players, and other mobs
Item frames in their entirety
Armor stands in their entirety
Dropped Items
Chests, beds, signs
Particles
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migrated
migrated
Duplicates MC-162693
Arisa Bot
Thank you for your report!
We're tracking this issue in MC-162693, so this ticket is being resolved and linked as a duplicate.
If you would like to add a vote and any extra information to the main ticket it would be appreciated.
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