In R6, a shaded display with Lighting Method set to Ambient Occlusion would correctly show mesh vertex colours. This no longer works in R7. We now need to set the Lighting Method to Scene Lighting, which doesn’t look as nice.
There were changes, and it looks like this was deliberate, yes.
It looks like that might change at some point, though - RH-65568 Display: Ambioent occlusion lighting mode ignores vertex colors
-wim
thank you for confirming this, and for pointing me to the YT ticket. It seem this a lenghty discussion you devs are having over vertex colours with AO. Thank you for marking me as a ‘+1’.