Windows 10, java 1.8u211
Entities assigned to a team with a valid team color set do not render their glowing affect the color of the team while invisible. However, the glowing effect does represent the team color when the entity is not set to invisible.
Join entity to team
Add effects and observe bug
Entity outline is gold before adding invisibility
Observe color as white after invisibility, the team didn't change so the color should stay the same. Bug
After 10 seconds the invisibility will wear off confirming the client didn't lose the team data for the entity.
Attached below are images of what the visual looks like. Too further narrow down the affected code there is also an example of where the skeleton is holding an item that is correctly colored, yet the body of the skeleton is not.