I have seen two separate versions of this error as I logged in after the hotfix patch on 9/18/2014.

The first looks like the following and seems to limit the amount of characters per line:

It gets worse when I finish a quest objective:


It gets worse:

The text when unsynced will gradually get worse and worse as the FATE goes on. In effect, every 10 seconds or so the Character limit per line is reduced. Until its a single character.

If I go inside a Duty or I Level Sync it fixes it so its readable, but it then elongates the lines across the UI:



To make it clear, this occurs for FATE, Dungeons, Trials, Guildhest, etc. Anything that uses the Duty UI.