Not sure what triggers this, but it's happened a couple of times to me, once with a non-VIP archer enemy (didn't get a video, just a still) and then with the Banneret in the attached recording.
Was playing solo and fighting a Banneret in the Glades for a T3 tale. Banneret and the rest of the group were responding normally, and I killed off the rest.
After continuing to fight a bit, he turned, ran a few meters away, and started acting like he no longer sees me. The recording starts there. Didn't respond to me approaching, running into, or attacking him.
Can't think of anything specific that would trigger it. I was using Mora and Bog&Myrtle both times, and didn't use secondary. And I used the same sequence of abilities (2, engage, 1, 3, attack with sword until 1 or 3 come off CD, repeat) as usual.
Edit to add: Their AI doesn't seem to be frozen, as they both use buffs when given some time. Saw the Banneret heal, and the archer used the buff where they raise their right hand toward the sky.