It works
I had this same issue and I disabled the LargeScreenBoostCapable in the registry and rebooted. The colors appear normal again, but I just looked in the registry and the setting is set back to 1 now. Not sure if that matters, but I'm just glad to have my colors working again.
Before, I had to change the palette down to 16-bit color in order to get the colors to work, but then you lose a lot of detail. This fix seemed to work for me. I just wanted to post in case others come across this.
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