I believe its only specific clients/NPCs.
I actually saw both happen in Sky the other night on the 2nd island. Another player would pull, and no one but his players (he was boxing 3 or 4 that night) would see the mob. We couldn't target/assist to get a mob target let alone seeing it. We didn't really find a way around this one.
Also had the other where a player would drop from our instance of the zone, but could still see it talking in /say. Only a camp would fix that issue.
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