This is for the feature report itself, not the XLS form, right?
I believe that you need to use the NAME of your list choice, not the LABEL (but try both because I don't remember for sure)
${if RecreationSpaces | selected:"fully_met"}${RecreationSpaces} ${/}
${if RecreationSpaces | selected:"not_met"}${RecreationSpaces} ${/}
Notice that I'm just changing the font color of the call to print out your ${RecreationSpaces} value. You can do this in your feature report as well. Background color, highlighting, text color ect will work this way (and I believe it's only the $ symbol you actually need to change)
edit: If you created your survey in the web designer, it may not be obvious to you that you have a name and label for your list options (or "Label" and "Code" when viewing in your AGOL Feature Layer details).
Here's a few screenshots on where to find that, assuming you don't see your name/code values otherwise (note that in my example, the name and the code match exactly. I try to do this on purpose, but it's usually not going to be the case)
![DerrickWestoby_2-1646241115393.png DerrickWestoby_2-1646241115393.png](https://community.esri.com/t5/image/serverpage/image-id/35377iC94730609E59A051/image-size/medium?v=v2&px=400)
![DerrickWestoby_0-1646240947968.png DerrickWestoby_0-1646240947968.png](https://community.esri.com/t5/image/serverpage/image-id/35375iE827B426DC7D525A/image-size/medium?v=v2&px=400)
![DerrickWestoby_1-1646240960326.png DerrickWestoby_1-1646240960326.png](https://community.esri.com/t5/image/serverpage/image-id/35376i87D781EBFEF89CBB/image-size/medium?v=v2&px=400)