You will probably notice / realise this more often in zones like Svasud Faste/etc, where you find alot of people. THe NPC / players just get invisible for a short time.
You probably already solved the issue a few months ago, but with one patch about five / six days I recognised this bug again. The patch was about the first cap improvement of server i believe.
Sometimes relog helps to see the people / NPC's again, but just for a short period of time.
1. Just login into a popular zone like porters(svasud)
2. Stand there and watch the people / NPC's seek and hide
Like i said - you already fixed it some month ago, but you brought the bug back with another patch a few days ago.
Check your patch code and look for side effects or pieces of code, which you patched backwards.
You should see people / NPC's all the time.
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