assign the returned value of wordpress function to a variable?

You need to set the echo parameter to false. The function defaults to echoing the output rather than returning it.

$wplist = wp_list_categories(
    array(
        'taxonomy'   => 'ntp_package_type',
        'pad_counts' => 0,
        'title_li'   => '',
        'echo'       => false
    )
);

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