An update to the issue:
The actual problem seems to be the remote 'turning off', as in when the activity swaps back to A its because the remote is disabled for a second then boots back up on its own, like a reset. This also has the effect of cancelling colour mode if its active, and making no output possible for half a second while resetting.
Additionally, the problem became worse but more predictable: now if you press any button while an activity light is on, the reset most likely happens. Also if you press the colour button it will reset almost immediately too without any other input.
However, when plugged into a pc, the issue doesn't occur. The remote behaves normally.
As the remote is very difficult to use now due to the resets being very frequent, I hope a fix to this is found quickly. I don't have a Mac, but my Windows laptop runs the software if that will help.