Animal and NPC AI in SIngle player stops at distance

Is AI supposed to just stop working at a certain Distance? If I get say 10 foundation blocks away (maybe more not really a way to do it outside of eyeballing) the AI just stops. Gators stop moving, NPCs freeze etc. This is inside Bow range though So you can just pelt them with arrows till they go down.

I don’t know if this is intended or a bug.

Really hope they tweak that. Too cheesy when you can rain down arrows on something while it just stands there looking for an umbrella