Happens to me to, but I just manually rename the instance. Does that not work for you?
Well that's not really the point. However, having to change the name and color on a large project with dozens of instances is time consuming. When I'm able to use an existing server project, it's no problem. But often I'm having to create a custom set of instances for a project and having to edit the names and colors is simply frustrating. And because there are so many instances, color is extremely helpful to find things to make adjustments.
The odd thing is while the instance is loading, the name and color appear. They just revert back once the instance is loaded. That leads me to believe the intention was for the name and color to copy over from the saved settings.
I'm hoping there is a fix for this.