Why the entire row won't highlight (the $ anchor problem)
When you write a custom-formula rule in the Sheets UI and type `=C2="Done"` without a dollar sign, Sheets evaluates each cell relative to itself. Cell D3 sees `=D3="Done"`, not `=C3="Done"`. The row gets highlighted only in column C, because that is the only cell where the relative reference happens to point at C.
Fix it by locking the column with a dollar sign: `=$C2="Done"`. The column is now absolute (always C), the row is still relative (shifts down for each row), so every cell in the row evaluates against the same status column. Leave the row number unlocked on purpose — that is what lets the rule walk down the sheet.
The first time I hit this, I spent twenty minutes wondering why the formatting fired on half the cells. The `$` placement is the whole story.