Invisible and only can see invisibility particles and hear the llamas.
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@Ping actually it's different on Bedrock. Wandering traders can still use invisibility potions even if it's not night time. They also don't drink milk buckets to clear the effect. What you have said is possibly the functionality of how wandering traders work on Java.
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During night time, the Wandering Trader drinks an invisibility potion to hide itself from mobs. This is intended behaviour, I think.