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Conditional Format On Highlighting High LOW

That's because you are including blank ranges in the formula. Also, you should adjust reference range (since you don't have header row(s) in your workbook).

Adjusted formula is going to be...
=AND($C1<>0,$C1<>"",$C1<SMALL(IF(($C$1:$C$625<>0)*($C$1:$C$625<>""),$C$1:$C$625,""),3))

FYI - You don't need to confirm as array in CF, all formulas are treated as array formula naturally in CF.
 

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