Yeah, characters blocking each other is an annoying occurence. In fairness to Larian, I think it's worth remembering that in tabletop, a creature's "space" is denoted by a 5 foot square, so being able to move through that space is basically meant to represent them not blocking you from passing by when you're in reach. BG3 doesn't have that level of abstraction, so when characters are blocked, it's them physically, literally in each other's way. It's still inconvenient though and changing it could be justified by simply saying they're taking a step or two to the side.