The simulator is displayed in this way if your screen is too small to fit the full version. Are you using something with a relatively small screen, such as a MacBook Air?
If so, this may not be an error (well, the second screen shot is obvious, but the first may not be).
Also check what hardware> Device Settings is used by your simulator. If it is set up on an iPhone (Retina), try changing it to an iPhone that works best on your screen.
Also check the window> Zoom and see if it allows you to change it.
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