Why does the highlighted text color in Xcode's Project Navigator sometimes switch to white with a blue shadow?

Solution 1:

It's just a bug which happens sometimes in Xcode, still happening in 8.1.

You don't have to restart to fix it, you can just hide and show the navigator by clicking this button twice:

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Solution 2:

I am experiencing the same issue with Xcode 7 (all versions). I have to relaunch the Xcode project to correct the highlighting.