I was creating a new program and had a white space in the name. The red diamond appeared. I corrected it but the red diamond stayed red. I just pressed okay anyhow and all was good. Is this normal behavior after correcting the name?
I presume this was in the "Create New User Code Block" dialog. I could not duplicate it. As soon as I deleted the space, "My Program" to "MyProgram" it went yellow (meaning the heap-item does not exist yet, but it will as soon as you hit OK).
I tried it on 2.3 and 2.0 and it behaved as expected.
If it was red, it could be the name was invalid for some other reason, so hitting OK would have given you THAT issue. But you said that you hit OK and all was fine.

That is what concerns me. If you can remember, please tell me the steps you took so I can (hopefully) duplicate it. What was the actual name (and could you have had another similar named code-block that was an EXISTING TASK vs. a NEW PROGRAM, for example).