Holding bits and looking at any surface brings up an overlay that looks like its supposed to line up with the block but uh. it definitely doesn't. Like not even aligned to the right axis or anything. Playing on the latest version (1.3.129)

Screenshots here: https://imgur.com/a/5lgNmlM

I can not reproduce this.

toggling interface off by pressing f1 fixes it for some weird reason

I have not been able to reproduce this.
I think this is related to some other mod that interferes with rendering.

if you have Iris installed, thats it
I had the exact same problem and it was iris wich was causing it