I never owned Family Tree Maker software, I am not affiliated with the company that created it, I've never created a Family Tree on Ancestry.com, and I've not seen this particular autocomplete error documented anywhere. That's a long way of saying I don't know for sure what the software did.
My educated guess is that the word "Colony" was entered in the place name field and the software converted it to "Colony, Laurel, Kentucky." This is consistent with the theories on how various other autocomplete errors such as "Y, Somme, Picardie", "Holland, Reusel, Reusel-de Mierden, Noord-Brabant, Netherlands", U, Cocle, Panama, "Young, Texas, United States", and "Age, Cuanza Sul, Angola" came about. Another oddity I've seen is "Estonia" as a location for a person who almost certainly didn't live in Estonia -- I assume that somebody once entered "Est" (for "Estimated") in a place name field.