I don't see anything wrong.The references of the CF don't change when you select a cell because the CF applies to the entire range and not only to the cell you selected
Yoy can see for yourself that the formatting is correct by entering your CF formula in a cell and dragging right and down. There you will see the formula adapt,and the TRUE values correspond to coloured cells.
It is also so that any formula entered in CF is considered an array formula by XL, and that is how they behave.

In conclusion, your solution is perfectly valid

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