investment Performance report totally incorrect

When subtotaled by account as you have done, the Investment Performance Report only has detail lines for money that has entered or left the account. Changes inside the account affect the ending market value but do not otherwise affect the calculations. You should find that the starting and ending values for the account match the numbers reported elsewhere in Quicken.

If you want to see the performance of the securities inside the account, customize the report to include just the one account and sort by security. Or you can set up an Investing > Portfolio view with an Avg. Annual Return (%) column for the time period of interest and group by accounts. 

Note that the IRR computed in this report is not generally useful for periods of less than one year, like the YTD in your report, because it is an annualized number. You could set the date range to Last 12 months or Yearly/Current Year