ISP:
Charter Communications

Type of Internet Connection:
Cable

Internet Connection Speed:
70Mb/s

Date & Time:
July 9, 2014 1:30 p.m. CST (Most recent personal occurrence, but has been a long standing issue for me.)

Frequency:
Always

Character Name:
Lhucca'to Mhakaracca

Race:
Miqo'te Keeper of the Moon, M

World:
Exodus

Class/Level:
Warrior/50

Area and Coordinates:
North Shroud (25,24)

Party or Solo:
Party (Party was 6/8 members full at the time.)

NPC Name:
None

Monster Name:
Odin (Though this bug can be duplicated with other intensely populated world bosses or events.)

In-Game Time:
12 a.m. (This is an approximate guess. I know it was dark when the event took place both when it started and ended, though this may also be due to the weather in the region which was "Hopelessness".)

Steps:
1: Approach a densely populated world event such as a FATE, Hunt, seasonal event, or world boss such as Odin or Behemoth. (Effect is more severe on low end PCs and on PS3, but is present on higher end PCs as well.)

2: At this point you will notice that you have extreme difficulty targeting party members, or enemies. Occasionally it becomes completely impossible to do so. The game will only spawn entities that are close enough to the player, seemingly randomly, and makes no distinction between party, non-party, pet, NPC, or enemy (Regardless of whether or not the enemy is engaged). Effect persists when settings are set to minimal and effects are off.

3: At the range Tanks and Melee must stand they are unreachable by Healers, and will therefore die. Healers must stand at range to do their job safely, but doing so makes them unable to target their parties tank. Being unable to target their party members the Healers, too, end up dead without protection. In addition Ranged DPS are unable to target the enemy or enemies.

4: Due to aforementioned difficulty interacting with ones own party or enemies you are not able to participate in the game content. This ranges from very disappointing, but not progression hindering (seasonal events and most FATES), to incredibly hindering (Quest required FATES, Hunts).

5: I know it's not the job of the bug reporter to come up with a fix for the issue, but I feel as though I should quickly add that simply making the game engine render entities in the order (Party > Engaged Enemy > Party Pets > Enemy > NPC > Other Players) would sufficiently alleviate the issue.