in .scss file:

in .vue file:

Actually I don't like it and people are requesting options to disable it even in VSCode...https://github.com/Microsoft/vscode/issues/10943#issuecomment-277258939
I'll add an option if enough people want this.
As a WA to this, if anyone still wants to have colors on Vue files, install the Color Highlight plugin and add "vue" to the config:
"color-highlight.languages": [
"javascript",
"typescript",
"scss",
"css",
"sass",
"less",
"php",
"xml",
"html",
"json",
"vue"
],

Please add an option to enable color indicator.
@gabrielboliveira Thanks for your advise, the color-highlight plugin works well, and I think the origin color indicator is redundant now...
@aprilandjan I believe that still is a good enhancement to do a enable/disable config, for those who don't want to install another plugin
I still don't like it. I recommend using @gabrielboliveira's extension instead.
Most helpful comment
As a WA to this, if anyone still wants to have colors on Vue files, install the Color Highlight plugin and add
"vue"to the config: