You also don't have Anti-alias checked, which gives smoother (less pixelated) selections and will make a difference when cutting, stroking or filling a selection.
If I'm reading this right, you are zoomed in to almost 3,000%? I would expect this behavior at that level of view, I think the lasso tool is going around the individual pixels.
Does it also do this with when zoomed out? Try viewing at 33% or thereabout and see if the problem persists.
You are zoomed in to over 2000%. At that size the pixel structure of your image is clearly visible as each image pixel is displayed using 400 monitor pixels. Photoshop uses units of pixels and is showing your selection based on that.