Title substitutions for taxonomy term panel page titles add extra text & HTML

When using "manually set" for the title type for my taxonomy term panels and setting the value to "%term:name News" the output says "Category: Local News" instead of "Local News". The title set in the html title tag is correct as "Local News" but the HTML output in the page title isn't right. A second class of "category" is added to the H1 tag. "Category:" is enclosed in a span tag, and "Local News" is enclosed in an em tag, all inside of the H1 tag. I've been trying to find out where this output is coming from but I've been unsuccessful.

The output I'm expecting is just the title text inside my normal H1 tag with the class of "title" on it like all of my other panels.

Any ideas on what causes the extra output or where I should be looking?

Attached is a screenshot of the output.