Folder and thumbnail display issues

Just installed MLF v4.0.4 free version as a trial on our dev site. There seems to be a display issue with the folders and the thumbnails. The folders overlap the Add File and Add Folder buttons, and the thumbnails are squished to fit the square thumbnail. At the top of the screen is a message about our PHP version. Is PHP 5.6 required to display properly? Here is a screenshot.

I have tried multiple browsers (IE11, Chrome, Firefox), but they all display the same.