Luke, here's a guide on how to find your Java version: https://www.java.com/en/download/help/version_manual.xml#wcpl
If you are actually using Java 5 you should update it immediately, but if whoever issued you the laptop is a competent sysadmin then they will have updated Java to at least version 8 on issued machines.
I've narrowed it down, seems like the issue is not present in 1.5.2 and below. Using the launcher I switched versions around until it started happening and it's breaking on every version including and after 1.6.1
I've actually played Minecraft using this same integrated graphics setup, but I have definitely had a few Windows upgrades and driver updates since then
My scaling is already on 100%. Based on Luke's screencaps he's also using integrated Intel graphics, I have a feeling that's the culprit here.
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Can you cap the "Display" tab as well?
Luke, can you take a look at the stuff tn the "Environment" section above and see if anything matches up with what you see in your machine when you run dxdiag? Could be an issue specific to something we have in common.
As of 1.12.2 and after the upgrade to the Windows 10 Fall Creators Update I'm no longer seeing this issue