After patching to 1.05 I noticed characters popping into existance when only a few feet away.
Will this be fixed soon?
Thankyou

Doubtful, fairly certain its part of 1.04/1.05's "performance" tuning.

I wish they would fix it. it's very annoying. Seems to happen more after playing for a while. i'm using a GTX970 just on high settings.

I find it more annoying that there are some npc(blacksmiths) that cause me to have to meditate to even be able to speak to them. Its like they are stuck in their work animations and it will not allow you to speak to them.

I have similar setup.I noticed over the weekend if Iturn sharpening off that the npc pop in has gone.
Visited novigrad and no problems.Now this could be just a fluke occurance but it may be worth trying.
I have also noticed the blacksmith bug.
Pity patch 1.06 does not seem to address any of these problems.

I played for a long time with sharpening off, pop in characters is here for me.

This is something I've noticed too. In my case meditating isn't enough. I have to save and reload to snap them out of it.