As someone new to the world of threejs, I have created a sample showcasing an issue for better understanding.
Feel free to check out the sample here.
In this demonstration, you'll notice that dragging the stage horizontally causes the cube and capsules to rotate. Interestingly, the red capsule always remains on top, even when it is smaller than the yellow one, suggesting it should be behind. Perhaps I'm missing something obvious here.
Credits to Marquizzo for their help. You can view the code here.