However I'm not qualified to judge the necessity of this, just wondering if it is universal or my pc or a bug.
It's universal, it's just how LOD works in engine. It just takes the existing model and simplifies it for far away objects so you get the basic outline in the distance for performance reasons. However when you zoom in the game does not rerender the object, it just zooms the camera as if you were closer to it.
To fix that they need to have a custom simplified model for basically all assets in the game, which they're working on but it'll take time.