The standard TCanvas class is not really suited for painting on "borrowed" canvasses. That is, taking a device context (e.g. from some other canvas object) and using it within another, separate TCanvas due to the way it manages GDI objects (relying on "owning" the HDC and the state of GDI objects in that DC that it is working with).
It can work, in simple cases, but otherwise the problems you are experiencing are not uncommon. In particular with a DLL, there could be problems arising from the fact that there are mechanisms within a TCanvas that rely on a "global" list of canvases (CanvasList) that need to be managed and kept in sync in response to system changes.
i.e. In a DLL there will be a CanvasList which is list of canvases in the DLL, separate to the CanvasList in the host application process. The application CanvasList will not include any TCanvas instances in the DLL, and vice versa. If a DLL has a TCanvas which is in fact a "duplicate" of a TCanvas in the application (using the same HDC) then it should be obvious how problems could arise.
I see two ways forward in your case which could be used separately or together.
You haven't provided details of all your painting code so it's difficult to say which is likely to be the source of your problem. However, you can identify this yourself quite easily by commenting out all of your painting code (between the try and finally in your painting routine). This should fix your font problem. If you then re-enable your painting code incrementally (line by line or section by section) you can identify precisely which painting operations are causing the problem and from there (potentially) identify a solution.
If your painting operations are very simple (just painting a few rectangles as you say) then you could use simple GDI calls to do your painting in the problem cases (or all of them), rather than using a canvas. In this case I would suggest that you pass a window handle to your DLL, rather than a device context. Your DLL should then obtain it's own device context via GetDC() and release it via ReleaseDC() when finished. You will need to manage the GDI objects when painting on the device context yourself but can then be sure that whatever you do you are not interfering with the GDI objects being managed by a TCanvas drawing on the same window.
Another possibility is to use SaveDC()
and RestoreDC()
, as shown in Sertac's answer.