When you create a new application in FTView 7.0, the software assumes a screen resolution of 640x480, which matches the popular PanelView Plus 700 and 1000 terminals. I thought I remembered that earlier versions required you to choose the resolution before creation, but I checked version 6.10 and it behaves the same.
Anyhow, that means that you have to re-size the Project, which by default scales all the screens and screen objects and fonts. The default Arial 10 font in the Alarm Banner object on the [ALARM] display becomes Arial 5, which I agree is (nearly) unreadable.
You should just be able to go into the Alarm Banner object properties and change the font settings back to Arial 10. The number of characters visible will decrease, so your alarm messages will need to be short. But isn't brevity the soul of wit ?