a href adds default URL with the given echo URL

You’ve forgotten the https://. This will happen in any HTML where you don’t add the protocol to a URL. Nothing to do with WordPress.

However, you should use esc_url() when outputting user entered values into a link, to make sure the output is a valid URL, even if the user makes this same mistake:

<a href="<?php echo esc_url( $item['url'] ); ?>">Website</a>