Setting the default font under Options > General and restarting Excel fixed the weird kerning in the formula bar for me.
I have a few other suggestions you can try if above doesn't work.
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Excel just started doing this: Expanding the space between the letters when I'm typing in Excel. (Notice the exaggerated space between the "S" and the "L"). When I press Enter, the spacing is corrected, but when I'm editing a cell, or typing in the formula bar I get this distracting spacing. I'm guessing this is a "feature" not a "bug", so someone give me the skinny. Why is it there in the first place? Can I turn it off?
Setting the default font under Options > General and restarting Excel fixed the weird kerning in the formula bar for me.
I have a few other suggestions you can try if above doesn't work.
This was introduced a few months ago. The Excel formula bar now uses a fixed-width font while you're editing. Unfortunately, you cannot turn it off.
This was done because many users now create multi-line formulas (especially if they involve LET and LAMBDA). Using a fixed-width font lets you align the text in different lines.