Outline on TMP text has weird effect when zoomed out

I'm using 2020.3.2f1 and I'm having this weird effect on my tmp text. It looks normal when zoomed in. I have a basic outline and it's working as expected, But then when I zoom out I get this

The outline is gone and there is this weird background coloration around the text

I'm just not sure what this is and why my outline turned into this. These are the settings I'm using for the material

As far as I can tell, the dilation is what's causing the weird background around the text, as it is still there when I only have dilation on. It takes the color of the outline If I have one, otherwise it's just black.

How do I turn this it off and prevent my outline from going away?

Or is this just how outlines and dilation are supposed to work at small scales?