This is a common issue when using hierarchical iterations in Azure DevOps, particularly in SAFe-style setups. By default, Azure DevOps Boards and Sprints views treat each iteration as a valid candidate for the current sprint — including parent nodes like your "PI 5", even if they are not meant to be directly used as sprints.
Azure DevOps highlights PI 5 instead of IT 5.4 in the Sprint view. This is because Azure DevOps treats any iteration with dates as a valid sprint, and does not automatically prefer leaf-level (child) iterations.
To fix this behavior, you can stop assigning date ranges to parent iterations (like PI 5). Azure DevOps assumes any iteration with a date range is a sprint. If you remove dates from parent iterations, Azure DevOps will skip them when determining the current sprint.