First off, this bug is world specific and I think it has to do with the scoreboard.dat file. Pretty much, Players with invisibility are rendered like they're in spectator mode.
The picture below shows what this looks like. I also linked the scoreboard.dat files for this world. Any Help?
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Please attach a screenshot of this occurring while the F3 debug screen is enabled.
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Note: This world has 19 different scoreboards, with each being important.