Emacs in this particular installation doesn't parse hyphens in Man-mode. I found the definition and initialization of Man-filter-list, but I don't really know what to do with it, as I cannot really see well the code being displayed incorrectly.
I think, this may also be related to the font not having the hyphen character. So, I'm not sure which direction to take this: try to look for a different font, or try to filter out the hyphens.
Would appreciate a snippet for filtering it out though, just in case.
I just tried changing font, it seems to be unrelated. Also, this appears in ansi-term in Emacs too, i.e. man pages render incorrectly around hyphens (the characters preceding hyphens appear to have a caret on top of them). This doesn't appear in other terminal emulators, like Gnome terminal. However, in XTerm man seems to run in a mode where it doesn't try to hyphenate words (it's slightly uglier, but no botched symbols).
OK, setting Man-switches to "--nh -E ascii" (for no hyphenation and no other weird characters) helps avoiding the botched characters, however, I'd love to know how to have hyphens and have them displayed properly.