What you are seeing is expected. Looking at the screenshot it seems you have pasted the link into the card title. The card title is supposed to be short and sweet - therefore it does not support any formatting such as line breaks or links. The link in the activity will link to the actual card.
I personally would recommend choosing a descriptive card title and attach the link using the Attachments feature of the card:https://help.trello.com/article/769-adding-attachments-to-cards
I feel so stupid, didn't even see that it says "title". I was trying to have the links visible so I don't have to make so many clicks.
15 years ago I've had to get a track pad because I was in so much pain from the countless clicks all day.
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