I looked in the scenario editor.
It's a part of the "Watering Hole" sprite which is not displayed correctly.
The upper part of the sprite is displayed over the hero sprite, this is normal.
The part just below the sprite is displayed under the hero's sprite, this is not normal, this part should also be displayed over the hero's sprite, hence this impression that something is wrong.
It is the same with the case of the road, the section of road behind the sprite of the watering hole should not be visible either.