The behaviour you see is not what GNU Parallel is designed to do: --progress is normally sent to STDERR and not to STDOUT for exactly that reason:
$ seq 3 | bin/parallel --progress echo {} >/tmp/out
Computers / CPU cores / Max jobs to run
1:local / 8 / 3
Computer:jobs running/jobs completed/%of started jobs/Average seconds to complete
local:0/3/100%/0.0s
$ cat /tmp/out
1
2
3
Has there been local modifications of GNU Parallel? Can you reproduce the issue on other systems?
PS: instead of 'echo -n' why to try: --tag