I have tested the .capx on two systems, neither using stretched desktops. One machine had the glitch, and the other machine displayed it correctly.
That means it's a graphics driver bug. Even if your drivers are absolutely latest and up to date (as they were on my two machines), they can still be buggy! Graphics drivers are terrible and a huge let down on the technology as a whole. We've blogged about this a lot, for example here. Let your graphics card maker know they're doing a poor job. Unfortunately there's very little we can do to fix it - if we change how games are rendered, we risk breaking it for machines which do display properly.
The machine showing the glitch had an Intel HD graphics 3000 chip. Maybe this is an issue with Intel chips only?