this is correct - the styling is intentional, and follows the look of the forms in iOS. The labels enclose the inputs, so that tapping anywhere in the row focuses the input. You can check how the iOS forms work in the default iOS apps (like settings, for example).
If you find that behavior not suitable for your app, you can override the styling of the inputs (restore their borders, for example), or use another skin, like the flat one.
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