CapsAdmin
Outfits draw on players that are set to not draw.
When you set the player to not draw with any of the nodraw functions or hooks the outfit still renders regardless if the player is drawn or not, this is not the case if the outfit wearer is not a player.
Are you sure it's a bug? The entity part isn't for controlling the whole outfit. It's only an entity modifier to modify some of the owner's properties.
Also, "any of the nodraw functions or hooks" is quite unspecific. Hooks? Name them.
To me the indication that it hides the outfits on props and not players or npcs make it look like its a bug and not an intended thing on PACs part. The function i used was SetNoDraw and the hooks were PrePlayerDraw and ShouldDrawLocalPlayer.