Issue
Demand state banner is not showing an arrow on a custom state
Release
Madrid Patch 3
Cause
Condition was not set for custom state in Flow formatters table.
https://<instance_name>.service-now.com/sys_process_flow_list.do?sysparm_query=tableSTARTSWITHdmn_demand%5Eactive%3Dtrue
Resolution
Adding the condition for custom state in 'Flow formatters table' should fix the issue.