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peacock.color
does not exist and we find either memento or a derived color (activity bar, title bar, status bar),As peacock is installed 1.4 million instances of vscode, I did not want to have a breaking change to existing users. This logic was put in place to help automatically migrate users from older versions to newer ones. I will remove this when we go to version 4, which may be about time.
Why does it exist?
The idea here was to help users migrate, without them needing to do anything. Thus, after time, most users would already be migrated. This plan seems to have worked very well as this is the first issue in more than a year on this topic.
Is it needed anymore?
I could remove this logic and shift to version 4 now, as it would be a breaking change. And my gut says it is time (almost 2 years since v3). This is the only change driving a new version at this time, so that Is something to consider.
I could also modify the logic to not check for the existing derived colors, which is what you are running into. This logic exists as a reasonable way for Peacock to determine if it should apply a color. But w/o this logic, it would be difficult to make a reasonable color choice.
tldr; I am deprecating the code.