Having a frame when the field is selected is fine as is -- it is a good idea.
The problem comes when the field is unselected. Then the frame serves no useful purpose, and makes the dialog look quite cluttered. The frame around unselected fields should be removed, at least visually. Perhaps just make it transparent -- that would be both easy and effective.
You might want to consider the same spirit for the dropdowns, but that is a separate topic. Just fixing the plain fields would help a lot.
--EV
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