Can you change formulas to make "Not Started" be the same as if it was blank? If I deleted the Not Started lines then my parent row would match my child/ children rows. (See snip # 2). I'm not sure if it's possible since you can't paste "Not Started" into a cell; it just changes to "Not Started".
My current formula:
=IF(COUNTIF(CHILDREN(), "Not Started") = COUNT(CHILDREN()), "",
IF(COUNTIF(CHILDREN(), "Green") = COUNT(CHILDREN()), "Green",
IF(COUNTIF(CHILDREN(), "Red") > 0, "Red",
IF(COUNTIF(CHILDREN(), "Not Started") > 0, "Yellow",
IF(COUNTIF(CHILDREN(), "Yellow") > 0, "Yellow", "---")))))