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i think that mysterious text appears when some kind of system text is missing:

for example, when i changed this line in login.php from:

<h2><?php isset($_POST) ? _e(‘Log in Failed’) : _e(‘Log in’) ; ?></h2>

to

<h2><?php isset($_POST) ? _e(‘Log in Failed’) : _e(”) ; ?></h2>

that crazy text appeared where ‘Log in’ should have been. hope this helps.