It's been like that since the patch.... If you use the FF7.exe from the patch. Another side-effect is the Wind. It won't move..... I speak of the part where you have to navigate Cloud over some crevices. Your supposed to walk over them when the wind dies down.... the last two have tornados or something. If you hit them, you get into a battle.
You don't see the tornados or the Wind... The animation is broken. It works in Software mode, but not Hardware. At least...the last time I checked, which was about 3 years ago.