Format Rule applied to Ref dropdown list?

It’s been a while since I have applied Format Rules so maybe this behavior has always been there.

I want to apply formatting to a Ref column when a row has NOT been processed. The format is a green icon and green text - very basic.

When I access the Form, I find that all of the dropdown values have the format applied. This doesn’t seem right. It seems the format should only apply to the selected column value NOT the possible values shown in the dropdown. (see image below)

Does anyone else see this behavior as an issue?

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