for the uninitiated NPCs milling about in Might and Magic 7 are counted as monsters that just don't happen to be hostile to you (unless you attack them) so if a sufficiently low enough level character were to have the Identify Monster skill and inspect them, this would be your result.
footage from Grimith's Might and Magic 7 series, this is the second playthrough located here: link
a more exhaustive first playthrough is located here link