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Are you using a "Select" to force your country codes?
If so, you should include your hint text as the label for your blank option at the top. For example:
I have also encountered this problem with the 'select' field type when using conditional visibility rules. Could not get the drop down to display a default "Select State" text in my case, so I had to resort to using a text field with character mask where user would type in their state code. Not ideal, but there are still a number of styling issues with forms 2.0 that I wish we could get a better handle on..