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This seems to only be affecting the new MaterialDesign themes. Changing the Theme to 2015Blue does not show the red border. MaterialDesignBlue and MaterialDesignDeepPurple do.
Contacted support, they have replicated it and forwarded to LPC.
Hopefully they get a fix in soon.
We use this control in our VLF-ONE environment and while are planning to use the MD controls in our next VLF-ONE app, it will take a bit to convert the current VLF-ONE app. There does not appear to be a "navigator" style tab control in the MD suite, so we need to use the PRIM_TAB in certain circumstances.