My search window in ArcMap has started to look like this, where everything is slightly overlapped. It prevents me from opening on certain tools, dragging them to modelbuilder, and occasionally just opens the wrong ones. I have several colleagues that are also experiencing this problem. I have searched around for a solution to this issue, and have not found one, but have found quite a few people asking the same thing.
Anyone know a fix? I'd prefer to avoid a clean install, as I don't really think that's going to be straightforward in an enterprise setting.
One option is rename/delete your normal.mxt located in your C:\Users\<user profile>\AppData\Roaming\Esri\Desktop10.7\ArcMap\Templates
Does the issue persist?
More details on Robert's fine suggestion:
Resetting your ArcGIS application profile
Another possible issue is ArcMap is not playing well with 4K displays. If you have one of those you may want to tweak your Windows settings.