Try this. In layout mode, go to Layout Setup. On the General Tab, un check 'Show field frames record is active'
Great, that did it.
Just for reference, what's the use of showing field frames when record is active when the formatting would do the same thing? ie. what might I miss by unchecking this function?
The Field Frames is an old legacy approach that we've long disabled more often than left enabled. The "in focus" appearance settings are new with the release of version 12.
Also the "frames" option as well as "Delineate" affect all fields in the layout while the Appearance settings can be specified for specific fields on the layout.