Understandably, there aren't many tourists in Nepal during July. In addition to being hot and humid, it's mid-monsoon, infact July is typically the wettest month of the year throughout the country. All that cloud cover means the visibility is poor too. Trails are muddy, landslides on roads not uncommon and domestic travel can be problematic.
July is one of the wettest months of the year in Nepal. With the monsoon in full swing it's not a great time of year to travel. Roads sometimes get washed away, particularly in the mountains, and internal flights can get cancelled due to bad visibility.
Pokhara in particular gets a lot of rain - nearly three times as much as Kathmandu. It does rain most days in Kathmandu too, but mornings are often dry and nearby ancient gems like Bhaktapur are still easy to reach. The mighty Himalaya provides shelter for certain sections of the Annapurna circuit around Jomsom, so whilst other parts of the country are inundated, trekking here is feasible with pleasant temperatures in the low 20s. You'll probably still find those mountain views obscured by clouds some of the time, but you'll also have the trails to yourself.
Can you still travel in Nepal in July? Yes, just about. Are there better months to visit? Without question!