There appears to be a bug with red letters showing in highlighted passages using custom highlights. This is true in dark mode or light mode. The built in highlighting palettes are still working normally.
Am I missing something or is this a bug?
Are your custom highlighting style preferences over riding the text preferences? If so, then it is a feature and not a bug.
It didn't previously do this. The text is set to automatic. I don't have custom font colors set. Just custom background.
I can confirm this issue. Steps to reproduce:
I suspect this is either a bug or an "unimplemented feature." (A "bug" is unexpected by the devs. There may be reasons why this behavior is expected, if undesirable.)