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At present, the display gizmos of Text Displayers are rendered using midpoint depth sorting.
That algorithm has a flaw - it can't solve occlusion loops.
If you arrange three long thin Text Displayer gizmos in a triangle, with their ends overlapping, and rotated so that they form an occlusion loop, they won't be rendered as an occlusion loop. At all times, there will be one that's in front of both the others, and that one will change as you move the camera.
No such problem occurs if you repeat the experiment with three long thin sculpts instead of Text Display gizmos. Sculpts are rendered in a way that can solve occlusion loops - most likely Z buffering.
I seem to remember the Trello mentioning a "projection mode" for Text Displayers that would project their text onto the surface of a sculpt. That feature's going to need to render Text Display gizmos with Z buffering or it'll look wrong - it would be nice if we could do this for all Text Display gizmos without having to use a sculpt.