Some lines still show the ansi codes while others display the colors correctly. It seems to be a feature of the platformio terminal, as discussed here with maxgerhardt and others.
The workaround is to add a space before the escape sequence
Thanks to pfeerick for this suggestion.
If you are using arduino debug logging feature in VSC:
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ctrl-click on the log_d or log_i part of the log statement, and it will take you to the macro where this is defined.
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Look for the 3 lines shown below, and add a space before the backslash character:
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recompile, and download to device,
This should help your terminal to decipher the ansi codes properly.