Zoom does not work at values greater than 100%

Try resetting the preferences:
https://community.adobe.com/t5/Premiere-Pro/FAQ-How-to-reset-trash-preferences-in-Premiere-Pro/td-p/8236158

If that doesn't work, try resetting the Workspaces:
Reset a workspace
Reset the current workspace to return to its original, saved layout of panels.
1. Do one of the following:
• Click the Workspace menu icon and select Reset to Saved Layout.
• Choose Window > Workspace > Reset to Saved Layout.
from here:
https://helpx.adobe.com/premiere-pro/using/workspaces.html

If that doesn’t work, try updating or rolling back your graphics driver directly from the video card manufacturer’s site.

It's working just fine here. That sort of image on screen is nearly always a video driver issue with the GPU, or some problem in that area of the computer. So my guesstimate is the newer verion of Premiere needs an updated graphics driver for your GPU ... or updated GPU. Not knowing what you have.

Neil