I’ve opened and closed a bunch of times. Editor cycle color does nothing. And as far as I can tell, mixconsole colors don’t do anything either (except for the dot in the dialog).
I noticed the cycle colour in the editors not working either, I assumed it should have based on the listed option and how it is worded. I hope this is just an oversight. I would love to have the cycle colouring in Cubase 7 the way I expected based on the option and not like previous version of Cubase. It does work fine in the project window however.