Is there a way on a project report to show just the colored bubble with the project condition and NOT the status update? For all of the other types of objects it just shows the bubble and condition.

We just use the Condition field (instead of Condition Update) and use Column Rules to change the color of the text to red/green/yellow.

I have done it on a few reports. Under the Column Settings you need to go to advances options. Then you can create a column rule. I also changed the name to show as "Project Health" instead of Condition.