If you can reproduce the problem within a new file with the same conditions, I'd be looking at checking for updates to the desktop app.
Do you have multiple conditions on this object?
If so, they are cumulative, and one can be overriding the color from another if they are both true.
Check to see if the text you have entered in this field is formatted. If so, remove formatting or re-enter unformatted text and see if that resolves the issue.
I have found that sometimes when people use copy and paste from other programs, it causes issues with the formatting.
Thanks for responding!
Pragmystic, you were right - I forgot that I had added a script that had formatted the text as black bold. Did not realize that that would override the conditional formatting...