Unable to whisper players

I am unable to whisper friendly players, on both horde and alliance characters, if the target player is in a different instance than myself while also being from a different server.
I get the message: No player named ‘x-y’ is currently playing.
Even if they are online, I can see them typing in global channels and find them using /who

The same error message appears if someone joins by group/raid while in a different instance and server.

I have tried:

  1. Disabling all addons
  2. Deleting interface/cash/wtf folder to reset my ui, while making sure no addons are re-installed by third party applications.
  3. running the following command: /console cvar_default
  4. Creating a new alliance character on my server
  5. Creating a new alliance character on another server
  6. Creating a new horde character on another server
  7. Logging in using a different computer.

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