I was doing some pickpocketing in West Weald for the Endeavor today, and twice I had the option to use the Blade of Woe on the npcs there for the final pick disappear. I noticed that all of the npc nameplates had also disappeared, and I could not see any player nameplates either. I still had the option to pickpocket for the third attempt, surprisingly. I tried a /reloadui which did not fix it, but going through the homegoods door (which brought up a loading screen) did fix it. This happened to me twice in about a 30 minute timeframe. I was also crouched while doing the pickpocketing so that might be relevant.
I suspect this bug might be related to the bug in IC where players cannot target other players until they leave the area.
PS5 NA