Found a dev post about this:
https://web.archive.org/web/20000817...ive/arc5.shtml
Quote:
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the change was made due to the way spells interact on NPCs. Basically, by going through a series of steps, people were able to make their pets permanently invisible. On the PvP servers, this created a huge issue where people being attacked couldn't figure out what was going on. On the "normal" servers, people were charming creatures, making them permanently invisible, then releasing them into the zone. I'm sure you are aware of the problems that a few invisible sand giants can cause.
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So the intention was never to take away the ability for pet classes to invis their pet, they were just trying to fix other bugs. Seeing as how there isn't any talk in the Velious era class threads of people being upset about not being able to invis their pet anymore, they perhaps figured out the bug by then and restored the functionality.