I tried adding food coloring and icing coloring to it and it just started clumping and no amount of heating would get rid of it. Can I use candy melt coloring on it? I wanted to use the almond bark to make butterflies for on top of cupcakes but its not working out for me yet...TIA!

Hi!
Couple ways you can do this:
Add pre-colored candy melts (or just use them by themselves)
Use coloring specifically made for candy (you can find those right n the Wilton aisle in a pinch, they are oil-based)
Use Flo-Coat and your regular gel colors

If you use regular coloring not made for candy, your chocolate will seize, like you experienced, and there's no saving it after that.
HTH!
-Sherry

You can try re-heating the coating with a little bit of vegetable oil. Sometimes this will help.

i have read that you have to use a food coloring paste or powder to color the almond bark and not clumping it and making it un workable