As stated previously, if you're in Middletown and the scanner is being used as a base scanner, then you're going to deal with simulcast distortion. The scanner is almost certainly receiving the Graham and Goshen subsites at the same time, and it doesn't like that because the 996P2 was not designed to handle P25 LSM properly.
Are you using the collapsible antenna that came with the scanner, or do you have it connected to a different antenna, perhaps an outdoor antenna? If you're using the collapsible antenna, try varying the length of it to see if that helps. Fully extended is not ideal for a 700/800 MHz system, so try with it collapsed fully and slowly extend it while seeing if decoding improves.
You can also try enabling attenuation on the north cell to see if that helps. You may lose the signal entirely by doing so, but it's worth a shot.
On the bright side, the signal in the Middletown area will improve greatly in the coming months, so if you really don't feel like spending $700 on an SDS model scanner, be patient and wait it out.