Forge version: 14.23.5.2855
Mod version: distinctdamagedescriptions-1.3-beta

There is only DDD mod.

I have tried to tweak client config. There still is the problem.
I have tested to change language. Only English is correct to display.

DDD doesn't have any updated localization that supports all of 1.3's features, so even if the tooltips didn't come out as a garbled mess, the text wouldn't be fully translated. Translation strings for the type names aren't actually provided by external lang files (although they could and probably should be). Some languages may be very challenging to support, given how DDD uses a custom font renderer to display damage type colours, and it may not behave very well for other languages. ("may not behave very well" is an understatement, it clearly doesn't from the screenshot you've provided)

While trying to tweak or patch the font renderer so it behaves correctly with other languages is certainly a noble cause, I expect that to be a little... challenging, given the difficulty I had implementing it to begin with 😅

I'll attempt to at least look into why the text comes out completely unsalvageable and see if I can fix that problem. Outside of that, the rest of this issue just boils down to the fact that localization for other languages doesn't exist for DDD and I'm a predominately English speaker so I can't write those lang files with any hopes of them being accurate.

I guess you break something in 1.3-beta.
There is not any problem in 1.2.1-beta.