Thanks for bringing it up.
This is sort of as-design. One of the inspect commands available in Simulation is component colors. Component colors are intended to be temporary, to completely re-color the model, and we may have missed this case.
Is your expectation that component colors would be turned off, and DOF would completely take over coloring, while it's active?
For now, please use shift+N, to toggle component colors off. You can do this while DOF is in effect. Perhaps the intent of the command designer was to allow you to view DOF and toggle component colors temporarily to see the different components. After all, if every component is red for DOF, the user might want to toggle back and forth to see the different components with component colors.
Phil Eichmiller
Software Engineer
Quality Assurance
Autodesk, Inc.