In the Category color selection section the text is either black or white, which renders it unreadable against some category colors. In the past, I used to be able to select the text color as white or black, but it seems that choice is not possible anymore in latest Discourse releases?
The feature to choose the text color has been removed. Now Discourse automatically selects the color with better contrast.
But I had the same problem you have, and Meta has (for example, in the category banners of Support > WordPress, Theme component and Site feedback > Forum summaries ): on existing categories, this did not work. My texts were all white - even the ones on yellow. I saved the category settings again, and that fixed it. But it was quite annoying to check all categories and re-save them to trigger the color calculation.
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Ok good to have confirmation that setting has been dropped. I tried to save several times but the text color never changed. May I suggest to bring it back ?