When near the top of a Mannequin that is sufficiently scaled, the NPC text doesn’t appear.
Run an attribute command that scales a Mannequin
/attribute @n[type=mannequin] minecraft:scale base set 10
Fly near the Mannequin’s head
You’ll see the NPC text not show up.
If you change the scale to a smaller value like 5 for example, the NPC text shows no matter where you are if you’re near it.
Can confirm