I was trying to get colors to work in a context mode, but more disturbing is I can't use variables.

Repro:
Run these from a CLI
- create an instance - cmd create mssql --accept-eula --using https://aka.ms/AdventureWorksLT.bak
- check things are running - sqlcmd query "select @@Version
- try to check colors - sqlcmd query ":color list"