That's an interesting issue which was never reported by before by a forum member.

First, I suggest to check if at Advanced - Settings/Configuration - Application Layout - Advanced the setting Store windows/menu/toolbars placements and configurations for multiple instances of application is currently enabled which is not the default as this would at least explain why getting a different display in second instance of UltraEdit. Uncheck this option except you want different displays depending on instance of UltraEdit.

Second, I suggest to open the folder %APPDATA%\IDMComp\UltraEdit in Windows Explorer (copy and paste this string into address bar and hit key RETURN to open the folder) while no instance of UltraEdit is running and delete all uedit32.in0, uedit32.in1, ... respectively uedit64.in0, uedit64.in1, ... which are the workspace files with the display settings. But do not delete the file uedit32.ini respectively uedit64.ini as this contains your configuration settings. Start UltraEdit and reconfigure the workspace (views, ribbons or toolbars, ...) as you like it.

Third, open the folder %APPDATA%\IDMComp\UltraEdit\wordfiles containing the syntax highlighting wordfiles. Open them all in UltraEdit and look on first line in all opened wordfiles if more than one *.uew file contains the file extension PY (case-insensitive) after File Extensions =. That would not be good. Just one file should contain the file extension PY, the one you prefer for syntax highlighting Python files. This wordfile should contain also the language marker keyword PYTHON_LANG in first line after double quoted language name. But it is okay if another wordfile contains also PYTHON_LANG.

Fourth, as it is written above the language marker keyword PYTHON_LANG enables code folding by indent level as required for Python syntax. A wordfile containing PYTHON_LANG must not have the keyword EnableCFByIndent, but it is definitely no mistake to explicitly add it for example after PYTHON_LANG. Important is that the wordfile with PYTHON_LANG and/or EnableCFByIndent does not have additionally the lines starting with /Open Fold Strings = and /Close Fold Strings =.

Fifth, check if in first running instance of UltraEdit a project/workspace is loaded which has a wordfiles directory or single wordfile configured in the project settings resulting in ignoring the wordfiles in %APPDATA%\IDMComp\UltraEdit\wordfiles.

Last a question:

Do you have a different wordfiles directory configured at Advanced - Settings/Configuration - Editor Display - Syntax Highlighting as I have on my computers?