Did a fresh vanilla AmigaOS 3.2.3 install and only installed P96, VisualPrefs, FullPalette, MagicMenu, MUI3.8 and AHI4. I can see a happy Hippo with the right colors. So it’s probably something with AmigaOS 32se and not HippoPlayer?
There's also a HippoPlayer bug if you use the scrollbar: Grab the scrollbar with the mouse and scroll down and up. The Playlist will be overwritten with „mod“. It’s all fine when you click below the scrollbar through your list.
My vanilla install also doesn’t have this bug.