Strange character overlap in terminal
For terminal emulators, you should choose a monospace (a.k.a. fixed with) font. The letters are positioned in a grid, rather than as it would look nice according to the width of each individual letter.
I had this exact same problem with a fresh Arch install.
I added the ttf-dejavu and kbd packages as per this and this.
problem solved! Not sure which of these fixed it but there you go, sorted.
sudo pacman -S ttf-dejavu kbd