Applying color swatches to objects not working

There seems to be a bug with Swatch and Color Panels. 

Steps to recreate:

1. Select an object in the Layers panel

2. Select a swatch from presets in the Swatches panel with the eyedropper OR create a color in the Color Panel

3. Sometimes it will change the color of an object, sometimes it won't. It seems very random.

I've reset prefs, restarted Mac, still the same behavior.

EDIT:

After some additional testing, it gets even stranger. I have a swatch group containing 6 custom swatches that I added.

Five of them will not apply.... HOWEVER, when I click on the light blue swatch (named 290 in the screenshot), the object changes to light blue. THEN, any color I select will apply. So... I cannot apply any color unless I select the light blue swatch first. Whaaaat?

v 25.2.0

iMac 3.6 GHz 10-Core Intel Core i9

AMD Radeon Pro 5700 XT 16 GB

Ventura 13.6.3