Some machines will have a hoop that has its start point (or center point) that is not actually in the center of the hoop. This would be the case with the one you have selected.
Which hoop do you have selected? It looks like maybe you have selected the No 1 & 3 hoop listed in "Others". This is a special hoop for one of the Janome machines and unless you actually have this machine and hoop you should not use it.