This bug has been fixed for Release 14 SP1 (R14SP1). For previous releases, please read below for any possible workarounds:
This problem can be caused by certain fonts, like 'Monospaced'. Switching to another font should resolve this problem. To switch the Command Window font, select File -> Preferences. In MATLAB 7.0 (R14), there is a single section for Fonts, instead of fonts being set on a per desktop window basis. Change the Desktop code font to use a different font, and press the Apply button.
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