Weird Gray Popup With Text When Typing In Searchview

I have a SearchView in my app and when I type in it, every character shows up in a weird popup as can be seen below. Layout: here. My code changes to the onQueryTextChange() method to fix this (basically use the Adapter's filter functionality):

    @Override
    public boolean onQueryTextChange(String newText) {
        Filter filter = adapter.getFilter();
        if (TextUtils.isEmpty(newText)) {
            filter.filter("");
        } else {
            filter.filter(newText);
        }
        return true;
    }