Controlling color display in Create Template dialog with RGB

Hi.

InRoads SS3 V08.11.09.674.
Feature definitions and (Civil) Element Templates are kept in two different dgnlibs.

I am trying to control the color display of the filled components in the template editor. For testing, I am using the supplied Example workspace incl. template library. The level colors (in level manager) have been set to RGB to avoid problems with different color tables.

With this setup, all template components are grey in the template editor.

In the example below, this is my color setup:
-The element template for Grade_Veg_Grass (the gray shape) is set to  ByLevel. This color should be picked from level manager (Green, RGB 0,210,0).
-All other element templates are set to RGB 254,0,255 in Element Templates.

My conclusion is that RGB colors will be read when defined in Element Templates, but not through ByLevel. 

How can I use RGB colors from Level Manager?