That is very strange.
The glcd memory is mapped 8 bits at time vertically. Each 8 vertical pixels is
written at once. The text is corrupted within that 8 bits.
It still could be a wiring issue.
Broken, disconnected, or poor connecting wires can create some really strange problems
as the signals float around and vary depending on loading and what is being done.
Diags is going to be the best bet for diagnosing the problem.
From looking at the display data bits 2 and 3 (glcd module pins 6 & 7) seem to be having issues.
Take a very close at the wires on those connections.
When diags runs what does the initial animation pattern look like?
(It should be a triangle from upper left to lower right).
Does diags get past the initial walking ones test?
You measured the voltage at pins 1 & 2 on the glcd at exactly 5v?
Can you get a clear shot of the wires so I can see the solder joints?
What is on the other end of the wires?
Are the wires going into a breadboard, or directly into the Arduino board?
How long are the wires and do they have any breaks or re-connections in them before
being connected to the Arduino headers?
--- bill