Does the highlighting work for you when first adding a new record via the grid? I find that it only works once the record is saved not on first creation.
It does, yes.

Must be user error lol
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Got this from support today: We have confirmed that the issue was indeed valid but has been resolved in all the versions. 11.3.100.18 (Kinetic 2024.1.18), 11.3.200.5 (Kinetic 2024.2.5) and 12.0.100.0 (Kinetic 2025.1).