I didn’t have any issues trying your code here with my indexed image, it recolored fine in v8.3.10. So maybe there’s something else going on like you apply a style after this code and that reset the recoloring properties, or you’re drawing a non-tinted duplicate over top?
Thanks for that clarification. I was looking for reference on another subject and saw the post below, it reminded me of your question. It seems there’s several style parameters that need set to establish the arc coloring.