Testing on latest stable minetest (0.4.16), archlinux, pure configuration, no addons (except for mobs_redo, mg_villages, handle_schematics (dependency of mg_villages) all mods are latest git versions).
NPC appears to be displaced vertically.
You can see that their hitbox is still displayed correctly and they walk properly, though their model appears to be submerged.
Testing on latest stable minetest (0.4.16), archlinux, pure configuration, no addons (except for mobs_redo, mg_villages, handle_schematics (dependency of mg_villages) all mods are latest git versions). NPC appears to be displaced vertically. You can see that their hitbox is still displayed correctly and they walk properly, though their model appears to be submerged.