This has been fixed in version 2.0.
The database environment's "Field format" command (under the OPTIONS menu when you are in Layout mode) only works for number, date, time and summary fields, as well as calculation fields that return a number, date or time result.
If you are in layout mode and have no fields selected, the "Field format" menu choice will be gray. However, even though there are no field format options available for text fields, if you select a text field, the "Field format" menu item will become available (instead of being grayed-out, as you would expect). If you select it, nothing will happen. This makes it appear that ClarisWorks isn't performing properly.