The garbage is from the ESC sequence sent to the client terminal to activate ATE's vertical scroll bar (in cases where the DIR caused scrolling, which is why it doesn't always happen).
DIR actually had logic to detect whether the client supported the feature, but the logic had a loophole in it that the AM62C driver was falling into.
I've posted an update DIR.LIT 3.4(173) which should resolve that problem. You can download it by running the UPDCUR.LIT command while logged into SYS: within a 6.5 installation. (The DIR.LIT should be backwards compatible, so once you download it onto a 6.5 system, you can manually transfer it to a 6.4 system.)