The problem
The living entity renderer checks if the rendered entity has a vehicle that is a living entity. If it passes that check, the entity will render with the same body rotation as its vehicle. However, Display entities aren't considered living entities causing this check to fail and not alter the entity rotation to that of its vehicle.
Possible solution
A possible solution to this problem could be to add another check to the living entity renderer that checks if the vehicle of the rendered entity is a Display entity. If the check passes, alter the rotation of the rendered entity to the yaw of the vehicle (in this case a Display entity).
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