Hey this is a engine bug we've got a job in to fix.
Essentially, we have a command to make player clones (being used here/kerapac & a few other places) however for some reason the command doesn't pick up recolor data currently. (A lot of items; like partyhats (especially older items), use the same base model and are recolored in the item config and as a result the player clone will show the default color for the model.