This is not a bug (assuming your culture rate is at 0% - screen doesn't show)
You need to increase culture rate to get any happiness from Theatres at all. They don't offer any happiness by default, but does add 1 happy face for each 10% of commerce assigned to culture.
This is the same for extra happiness from Colosseums btw (except that they only generate 1 happy face extra for each 20% culture).
If you have a resource of dye (+1 happy) and you have a theatre, then you will get an extra happy from dye (+2 happy), but not from the theatre itself.
If you have a theatre, and you have a culture tax of 10% (or more) then you will have 1 happy per 10% culture tax.
So it works correctly. You got a second happy face from the dye, but you won't also get a happy face from the theatre.
This is the same for harbours, markets and groceries. A harbour will cause the health bonus on fish to increase from +1 to +2, but the harbour itself won't generate health.
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