Files greyed out in selection windows of apps

I have a Mac Studio M1 Ultra running Ventura 13.2.1.

Problem is that when I go to File/Open (or other commands that bring up a file selection window in my apps) eg. Acrobat, Word, etc the files in the list are all greyed out - yet I can still select them and they open fine.

Same problem was happening on my previous Mac Pro and I hoped it would be fixed with newer Mac, but no. I did a clean install of all software on the Mac Studio, so not a problem that has been transferred from old computer to new.

Given the files open, it is not a critical problem, but it is a very annoying one! It also makes the file names in the list hard to read.

Have searched online for answers, but all solutions I've seen relate to files that are not available within the particular app and/or therefore won't open - not the case here.