It kind of contradicts the name and purpose if you're flying through space and see a massive white tag that says "Invisible Object 40ft#386"

Does anyone else have this problem when placing invisible objects to be interacted with, and does anyone have any solutions?

Manually change the tag to "."

Yes, it's annoying. I usually try to hide it "energy readings" or "warp out coordinates"

Use the biggest one and set it to only become visible when the player is already inside it. Granted that doesn't work every situation, but it has worked for me a couple times.

You need to rename interactable objects in space. If you have nothing better to call it then you can name it Object, just as it was before the change that allowed us to rename them.