If you run this piece of JS e.g.:
console.log("\x1b[31m" + "Test" + "\x1b[0m")
You should get the word Test in red, however the output reads something like this:
[Running] node "...\tempCodeRunnerFile.javascript"
[31mTest[0m
[Done] exited with code=0 in 0.285 seconds
When run manually from the command line it works:

Probably an encoding issues. Tested on Windows 7.
Please use below setting (File->Preference->Settings) to run code in Integrated Terminal:
{
"code-runner.runInTerminal": true
}
Please use below setting (
File->Preference->Settings) to run code in Integrated Terminal:{ "code-runner.runInTerminal": true }
I think it will is default setting better
Most helpful comment
Please use below setting (
File->Preference->Settings) to run code in Integrated Terminal: