Check to see if this occurs only through the CICS interface. Verify that the COLOR parm on the #UCFCICS macro is not defaulting to NO. It takes these values:
Specifies whether the front-end is to check to see if the terminal is a 3279-type terminal with extended color support. If YES is specified, DC/UCF will treat the terminal as a 3279 terminal if CICS reports positive settings for either the COLOR or EXTDS attributes. If ONLY is specified , DC/UCF will treat the terminal as a 3279 terminal only if CICS reports a positive setting for the COLOR attribute. The default is NO
You also have to add a type T3279 for each model type you have:
#UCFUTD TYPE=T3279,MODEL=3 etc..