The way I think about magic is in layers. Nystul's allows you to determine whether a spell like detect magic registers a creature as magical or not. Even if you decide a creature registers as non-magical, if they later have magic cast on them, like invisibility, then they radiate magic.
Now, make them invisible and then Nystul's and I think it could work. But lets be honest, making a creature even more invisible is a fairly tame use of this spell.
I used Nystul's on a succubus that was interacting with the party. She would register as human to spells and effects, despite being a fiend, and honestly, what succubus would not have an aura like that, it makes life so much easier.
In fact, any inflitrator type demon or devil who is possessing someone is going to want that, so they aren't immediately detected the first time a paladin visits the king.
Want to be really cruel? Have a lich use this on their Phylactery, then just put the phylactery under a flagstone or something. Unless the party truly tears the place apart stone by stone they aren't likely to find it, and the Lich doesn't have to worry about his phylactery being taken and destroyed. For added fun, make a fake that you have read highly magical and necrotic with Nystul's, then when they break it they feel accomplished, only to have the Lich return good as new later on.
Personally? This becomes one of those spells where I have to ask why an ancient and powerful being hasn't had this done, because it is so useful and so cheap that everyone should be using it.