I reinstalled to check if its the issue with my laptop but it seems Android Studio is the one at fault. I have seen people with this problem but no solution seems to work. One key note is this also happens in IntelliJ Idea Ultimate if I open up any android project. PFA screenshots of the issue.
Some of the solutions I have tried is windows scaling to 100% but it made it worse as well as the properties and changing the high dpi settings.