Well, in a manner of speaking, they might appear frozen in time- we can only see light at that distance, but let’s say we could see our friend Harry.

Since the light from Harry has to cross an increasingly large distance to reach us, he will appear to move slower and slower. It’s taking longer for light to reach us, hence longer for us to see change. Instead he just gets redder and redder, and kind of fades out.

This applies for space time dilation in other areas, ie, Black holes. If you watched Harry head into a black hole, you’d never see him suck in. Since gravitational dilation is rapidly increasing, Harry will slow to a freeze and red shift out. He is already gone but his image/light is taking longer and longer to reach you, until it can’t reach you at all.

Edit; I’ll add that due to the sheer magnitude of time on this scale, everything we observe seems pretty much “frozen in time”. It just takes too long anything big enough to observe to happen , we only get a snap shot. We get lucky and find this or that happening to a distant Galaxy, but we probably won’t be around long enough to see any process play out.