I have seen display issues when you are in past 1:10. There is nothing necessarily wrong/incorrect with the data, you are just zoomed in past what is usable and what the tolerances are set to. When this happens, it causes the displayed data to show weirdness, as you are seeing.
I do not think that this is a defect but more of a display issues when zoomed into such a large scale like 1:1.
Is there a reason that you are zoomed in that close?
--- George T.