In my experience, this kind of stuff can happen with a faulty GPU, so that might be your problem, although if it really is a software problem, it's possible there's a driver setting that's causing it (maybe anisotropic filtering or antialiasing transparency).
If you're on a laptop, you can always just run the game off your igpu instead of your dgpu, i mean, it's not like you need a dgpu to run a game from 1999, even modern EQ can run off the weakest potato laptop you'll find these days.
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