**Holding an item in hand appears to be black & white instead of it's original color.

Steps to Reproduce:

1. Get any item into your hotbar or inventory (move the item to hotbar if it's in your inventory)
2. Select the hotbar slot in which the item is placed in (the item appears black and white in your hand

Post Updates:

• Apparently, this only occurs if the Video Settings option "Fancy Graphics" is on

You can see more information in the attachments below: