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That's super weird! I bet it's really frustrating to not be able to see where the clip is going. Have you tried resetting your preferences?
Nothing will happen to your project, but it'll reset some of the program's behaviors.
Let me know if that helps!
I believe Premiere Pro is working better now. I also had weird instances of markers not being applied to the correct spot of a clip when I applied them. I think trashing preferences helped with that issue too.
This problem started up again about two weeks after clearing preferences. I cleared cache and previews today. Maybe something positive happens?
When I switched from the Move Tool (V) to another tool the cursor doesn't change the shape to match the new tool.