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DATD is simply wrong.
NPC spells out as non-player-character.

Woah! I didn't know that [sarcasm]!
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Any character that the player can control by the command “GO” is a player’s character.

There's a difference between PLAYER character and PLAYABLE character. One represents the player in the game world, the other is a party member. You played Baldur's Gate, no? Well, there's ONE player character in baldur's gate, if you remember.