@joshawajones This is intended behavior, based on the language in the documentation article, Use conditional formatting in views. When you choose to display custom text over the original field value, the system is not able to recognize that you want to edit the original text. What you may want to do, is add the column twice to your report (one with conditional formatting, one without) so that you can edit the original text in-line.
Language pulled from the documentation article:
Important: Selecting Show Text disables the ability to inline edit the text in this column.