To reproduce: 
1. Add GridView which inherits the RadGridView
2. Populate the grid with some data
3. Add conditional formatting and set RowBackColor and CellBackColor 
4. Subscribe to RowFormatting event and change the font of selected row: 
void radGridView2_RowFormatting(object sender, RowFormattingEventArgs e)
{
    if (e.RowElement.IsSelected)
    {
        e.RowElement.Font = new Font(this.Font.FontFamily, this.Font.Size + 2, FontStyle.Bold);
    }
    else
    {
        e.RowElement.ResetValue(LightVisualElement.FontProperty, ValueResetFlags.Local);
        //e.RowElement.Font = this.Font;
    }
}

5. Select row with conditional formatting. The font of selected row is bold which is correct. Select another row and you will see that the previous row is still bold.

Workaround: 
Subscribe to CellFormatting event instead RowFormatting
void radGridView2_CellFormatting(object sender, CellFormattingEventArgs e)
{
    if (e.Row.IsSelected)
    {
        e.CellElement.Font = new Font(this.Font.FontFamily, this.Font.Size + 2, FontStyle.Bold);
    }
    else
    {
        e.CellElement.ResetValue(LightVisualElement.FontProperty, ValueResetFlags.Local);
    }
}