Hello! This is an expected functionality as the cPanel user's interface requires access to /etc
to pull necessary account information for the UI. The users shouldn't be able to see other users added by the system, however.
Additionally, as GOT mentioned, you can also convert to CloudLinux with CageFS to mitigate the issue if you'd like to avoid it altogether.
I hope that this helps. If you have any other questions or concerns, please let us know!