Kerbal Space Program

This could be your tracking station, but I also see this sometimes even with all buildings leveled up to max.

Also, I see this kind of weirdness often in maps. For instance, If I'm controlling a craft in Low Kerbin Orbit and I look at my map and see an asteroid making a fly-by of Kerbin, I often see that asteroid's path as an orbit with a huge apoapsis, not as an encounter with an escape coming up. This seems to happen only when the asteroid is inside Kerbin's SOI.

However, if I target that asteroid, I think I see the correct track with the encounter/escape markers showing up as normal.

I also get this kind of oddness in orbits on the map with ships when making transfers between bodies sometimes.

To clarify, this never happens with the ship I'm commanding, only with other objects I observe in the map screen, just as it happened in your pic, and always seems to happen when the object is on a track to transfer between SOI's.

Yes, this has been an issue for quite a long time now. Only when the craft is viewed from a map while not being the target does it show the incorrect orbit. If you select it from the tracking station, you'll see the correct orbit. Same if you were to target that vessel. I've known this to be the case for many years now so I don't know what version it first started.

This is typical, intended behavior of Tracking Station Level 1 in Career Mode. Level 2 unlocks “Patched Conics”, which allows you to see when you’re entering or exiting a body’s sphere of influence.