I can reproduce that issue.
As an aside, you should have a Shuffle command (~sort=Random) in that View definition before the Limit function, as per the Smartlist definition called "10 Random Albums".
I also broke the View, preventing it from even displaying Album covers like your third image, just by changing the "Set files for display" from;
-[Media Sub Type]=[Podcast],[Radio] -[Album]=[] ~sort=Random ~limit=10,-1,[Album],[Album Artist (auto)] ~a
to
[Media Type=[Audio] -[Media Sub Type]=[Podcast],[Radio] -[Album]=[] ~sort=Random ~limit=10,-1,[Album],[Album Artist (auto)] ~a
That shouldn't happen, as the extra [Media Type=[Audio] is just repeating a condition applied at a higher level in the definition. But strangely;
-[Media Sub Type]=[Podcast],[Radio] -[Album]=[] [Media Type]=[Audio] ~sort=Random ~limit=10,-1,[Album],[Album Artist (auto)] ~a
doesn't cause that issue. Strange.
Anyway, I have a vague recollection of a similar discussion quite some time back. Something about the scope of the View being changed when moving from the Album level to the Track level, so Album "A" gets selected, but then when you drill down to the Track level, the View is refreshed to select Album "B", and MC tries to display Tracks that belong to Album "A" and exist in Album "B". Something like that. I think Hendrik explained what was happening at the time.
I can't recall if that was a bug or just a difference in the way Standard View works compared to Theatre View.
So I can't get the View to work in Theatre View either... Well, actually I can, if I have a Library with only one Album in it, or if by pure chance the Album selected when I drill down to the Track level matches the Album already selected at the Album level. I was able to repeat the latter in my small test Library easily.