It looks like you are simulating the thermal strain created by cooling down a composite material from 1326 C to 20 C.
I assume the two materials have zero thermal strain at the beginning of the simulation, and the thermal strain develops as the materials cool down.
To accomplish that, you need to set the Environment temperature to 1326 C since that is the zero thermal strain temperature for all the bodies.
What you have done by leaving the Environment temperature at 20 C is that is the temperature where there is zero thermal strain, then in step 1, the temperature increases to 1326 C, causing massive amounts of thermal strain, which turns elements inside out.
Under Analysis Settings, turn on Large Deflection.