It is not red in my live project. See the attached.
You need to define permission scheme and make this user assignable, looks like by default project lead is not assignable in permission scheme.
Please refer the following link on how to do the same https://confluence.atlassian.com/display/JIRA/Managing+Project+Permissions
Hi George,
Ensure that the current Project Lead(eg: Brenda for project onBoard) has the Assignable User permissions for that project.
Update us on your finding.
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I will review roles again but I don't see where "Assignable User" permission is set.
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