The word "CAPTCHA" is a technical term, and I strongly suspect that most people don't know it, and call it "weird letters that I have to type when I'm creating an account and in other random situations".
Nevertheless, this technical term appears in many interface message shown to users in MediaWiki, extensions, and apps.
It can be kept in some technical messages, for example Apihelp, but it should be removed from all strings that end users see. It's hard to understand and hard to translate.
Finding the affected messages should be fairly easy using translatewiki.net translation search in English:
https://translatewiki.net/w/i.php?title=Special:SearchTranslations&query=CAPTCHA&language=en
(@Nemo_bis and @Nikerabbit, please correct this if it's wrong—you know Special:TranslationSearch better than I do. Thanks.)
I'm not totally sure what it should be replaced with; maybe "human confirmation", or "security code". Suggestion are welcome.