As seen in this reddit post:
https://www.reddit.com/r/emulation/comments/3i77ki/banjo_kazooie_hd_playable_on_xenia/
Color issue identified and demonstrated in this comment:
https://www.reddit.com/r/emulation/comments/3i77ki/banjo_kazooie_hd_playable_on_xenia/cue39cr
Yeah, known issue with Banjo Kazooie. Suspected issues with render to texture.
I found that if you set the internal_format var to GL_RGB8 you get the correct colour profile, but then there's an issue with the alpha channel. The game loads using "k_8_8_8_8" as the ColorRenderTargetFormat. Perhaps we just need to keep the original arrangement (where it passes to the GAMMA format) and flip the two colours around? I will keep experimenting (note, I am NOT by any stretch an "expert" when it comes to C/C++ or DirectX).
I should also note that in the switch-case further up in the command_processor.cc file I have set read_format to GL_BGRA rather than using the existing copy_dest_swap test.

This one resolved and can be closed.
:+1:
No, this issue is not resolved....
It has been with the OpenGL renderer, but not with Vulkan.
https://github.com/benvanik/xenia/issues/578