Thanks for the Time Machine suggestion!!! I do NOT have time machine, but I made a Carbon Copy Cloner backup on an external drive a couple weeks prior to installing iMovie 10.1.13. It was a little tricky (for me) to find 10.1.12, because my searches kept redirecting to my built-in drive. However, I did find 10.1.12 on the backup and Opt dragged it to to my built-in drive. Asked whether I wanted to replace a new version with an older version – HAH! which I did. 10.1.12 seems to work ok, but I'm not knowledgeable enough to test everything. BUT ... NO weird text or broken image blocks! AND now I can again access my previous MAC VIDEO LIBRARY contents – which were visible only as grayed out and not accessible from 10.1.13.
"Theoretically" I should have been able to find 10.1.12 on my backup drive, even if I had done a newer backup including 10.1.3, since I have plenty of room on my backup drive. (Another issue to explore another day.)
Thanks to all for trying to fix a problem that it seems Apple created (or at least permitted to happen). Not my hoped-for solution, but it reinforces the importance of backups and learning from others.