This is an old thread, but thought I would post an update, since I stumbled onto the problem's solution. Since I have some vision problems, I have my display Scale setting in both Windows 10 and Windows 7 set at 125%. Turns out, this causes the problem in a Word graph. If I set the scale back to 100%, then the documents display normally, and can be edited without changing the way they are displayed. I stumbled onto this by accident when working with the Windows 7 computer. The Word documents had been displaying normally on the Windows 7 computer. Then I decided to increase the resolution, which of course, made things smaller. I then went to the display settings and changed the scale to 125% to make things larger. First time I opened the Word document after making that change, the weird behavior appeared. If I changed the Scale back to 100%, things returned to normal. So I then tried it on the Windows 10 computer, with the same results--Scale at 125%, strange behavior. Scale at 100%, all is well. I still like the 125%, so now I cope with the issue by simply resetting the Scale to 100% to work with that specific document, then set it back to 125% for working with everything else.

Don't need any additional help with this issue. Just posted this for information, in case someone else encounters the same problem.