auctex: Known problems
3.1.6 Known fontification problems
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In certain cases the fontification machinery fails to interpret buffer
contents correctly. This can lead to color bleed, i.e. large parts of
a buffer get fontified with an inappropriate face. A typical situation
for this to happen is the use of a dollar sign ('$') in a verbatim macro
or environment. If font-latex is not aware of the verbatim construct,
it assumes the dollar sign to be a toggle for mathematics and fontifies
the following buffer content with the respective face until it finds a
closing dollar sign or till the end of the buffer.
As a remedy you can make the verbatim construct known to font-latex,
Verbatim content. If this is not possible, you can insert a
commented dollar sign ('%$') at the next suitable end of line as a quick
workaround.
Info Catalog
auctex: Faces
auctex: Font Locking