Well, the issue reported on Graphics Bug in Windows 7 after installing August 2017 Security Updates, and also by Woody, rather unsurprisingly, also occurs on XP SP3...
It only affects those using more than one monitor, and req monitors to be setup in such a way that certain parts of the screen have negative screen positions. For example a secondary monitor setup to the left of the main monitor, or with a higher top border than the main monitor, or both (which is the case of one of my machines). Then the secondary monitor starts acting up. Solution? None, yet, for XP. Workaround: uninstall KB4035055. By doing that the latest win32k.sys (v. 5.1.2600.7312) will be replaced by v. 5.1.2600.7297 (from KB4025877). This issue only happens in the conditions described, everybody using a single monitor, and people using more than one monitor in unaffected spatial arrangementes may safely ignore it and keep the latest win32k,sys! HTH