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The compiler is set correctly in my C::B - GCC!! For some reason, C::B is running gcc in such a way that the obj file(s) are not created in single file, no project mode.
I tried to include a screen shot but it didn't work.Anyway, I don't have an entry like you show with the arrow.I just have GNU GCC Compiler with no default after it
The "Set as Default" button is greyed out/not active on my version of C::B. The dropdown menu works and I can select from a long list of compilers - so I chose GNU GCC Compiler - but I cannot make it the default!!