I didn't know about these options until you just asked. Setting the options for Selected State allows you to display list items differently depending on if the item is unselected, selected or if the user is hovering over it. It could be very useful to make a design like 'only show the item name if it is not selected, but show a picture and full description if the user is hovering or has selected it'. This won't fix your original problem, but here's how to do it.
In List widget, settings panel hit selected or hover
Then Custom and accept warning
Redesign your list as desired. Switch between states with buttons on side of list.
GIS Developer
City of Arlington, Texas