EDIT (New Response):
The issue was traced to an issue when setting a color as the android:icon
in the ActionBar. I ended up using https://stackoverflow.com/a/13705280/413254.
See the thread over on github - https://github.com/robolectric/robolectric/issues/1053 for more context.
Old Response:
I was able to fix the issue by adding
<item name="android:windowNoTitle">true</item>
to my theme file. However this removes the ActionBar title... which is not what I want. I suspect it's an issue with styling the ActionBar. I'll report back with my findings.