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You’re not imagining things—this is a known iPad + Word behavior, and the good news is that it’s almost always caused by an iPad Accessibility display setting, not a problem with your document or Word itself.
Based on multiple Microsoft and Apple support threads, the most common root cause is that an iPad display filter (Contrast / Color Filters) has been turned on—often accidentally or after an iPadOS update. This causes Word documents to appear black & white and disables color selection, even though thumbnails still show color.
Below is a step‑by‑step fix, in priority order.
This exact setting has been confirmed by Microsoft support to cause Word documents to lose all color editing capability on iPad [learn.microsoft.com], [learn.microsoft.com]
After turning it off:
Even if your entire iPad doesn’t look grayscale, Color Filters can still affect Word.
Apple users have reported Word and other apps returning to full color immediately after disabling this [discussion....apple.com]
Sometimes Word is fine, but the document background or view mode is interfering.
Dark or custom page colors can suppress visible text color changes in some iPad builds
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