Now that is really well designed by Microsoft right there, I didn't see it until I changed Edge to start from the new tab page.
I have same thing myself. Did this only just start happening this week or so as I have heard the latest patch broke edge but since I don't use Edge, it wasn't a problem to me.
Have you tried clicking the bookmarks as it still highlights them if I mouse over them, and lets me select them still.
Have you tried restarting Edge as now I only have the bing search option and it shows full size icons, before restart I had same problem as your pictures show.
this is after a restart of browser:
it seems your default search is the one that shouldn't be there. As you can see, the default search should be showing in the taskbar, not in the window
are you on latest build of windows 10?
right click start
choose run...
type
winver and press enter
Current version is 1703 built 15063.608