Located in Column Settings > Lookup Options is the on/off toggle for “Apply Styling,” which does this:
“Apply styles from lookup table like color, bold, etc. Includes styles from conditional formatting or directly applied to the full cell.”
This causes Lookup values to be rendered wrapped in an oval that takes on the formatting of the source row’s display column, which is terrific!
That same toggle functionality for formula results and @refs would also be very useful.