I have not seen that kind of ghosting before. That sounds like there’s a significant problem. Is this a relatively new clock, or has it been around for a while? It is potentially possible that some kind of gradual LED failure could lead to this… maybe try swapping the LED digits around to see if that changes anything? A poor connection to the drive transistor or LED driver chips could potentially cause a problem like this.
For the losing seconds problem, are you using the Chronodot? If so, you should still expect a time drift of around two minutes per year, or about 10 seconds per month. If you’re seeing significantly more than that, your Chronodot may not be working (or connected) correctly. A first test is to reset the power, and see if it “remembers” the time.