Based on the code that you posted originally I would say that your form had the dynamic values specified for the select list before you applied CSS Form Builder to the form. If this is not the case please let me know.
I'm thinking that this is the case because this select list should have the dynamic attributes written out differently if it were applied after the fact. If you can confirm this for me I will do some testing here to try and determine some more specifics about this type of scenario and how the CSS Form Builder should handle these values compared to what it is doing now.
What it looks like to me is that the dynamic attributes were in place and when the form was recreated with form builder just the values were left. These values would have been correct on a page that had a dynamic list but there would also be a loop around the values so that you get them from all the records.
Please post back and confirm the details or let me know if the circumstances are different and I will investigate this further.