New UI breaks color formatting in world names

Using formatting codes, § followed by a number or letter, to for example change the color of text in world names doesn't work with the new UI. The formatting is ignored and displayed as normal text, “§3Test 2” in white instead of “Test 2” in dark aqua.

Screenshots show:

• The issue in 1.21.72

• The issue in Preview 1.21.80.26 when set to new UI

• The correct behavior in Preview 1.21.80.26 when set to old UI

Screenshots are from PS5 but the issue is present on all platforms as far as I know.