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1.Yes, everything is working as intended 2.No, it happens only if the UI settings are set to low, if they're set to high they go back to normal right away 3.It seems to happen only after a while in the world, but the item icons dont look like this, it takes some time to get to this stage and it...

Here. As I said this seems to happen only if the UI settings are set to low

I had all the graphic settings set to low, but the icons start getting "messy" when I have UI graphics on low.

I know this may fix by simply restarting the game, but is this normal? I mean, does it happen on the other versions of the game as well?

Me and my friend have discovered this bug/exploit which i find pretty game breaking. Hope you can fix it as soon as possible. If you go to the crafting guide, look at a craftable item then move out of the guide's "hitbox" (slowly) you can craft the item you were looking at even tho you might not...