This occurs because character sizes for a given point size for a given font aren't the same, and when space is limited, text gets cut off, like you see there. The best solutions to this are reducing the point size and/or using a different font.
As for how common this problem is, I think it's more common than you might think, given that most developers don't test how their applications will look with a different system font than the default, and that space for UI elements is typically fixed.