I'll move the room to another location; it may or may not break the placeables there.
This fix did help somewhat as I can no longer see occupants through the wall. However, I can still see in the chat log emotes that aren't whispered when I'm outside the room, including the side room. Perhaps it's an issue with the door type in the tileset?
Edit: Okay, I tested it again and it looks like after you're past a certain threshold from the door you can't see messages in the chat log. The side room is also air tight as well, it just takes a few seconds after the door is locked and closed.
I think this fix will suffice for now, I appreciate it EO!