I haven't played any other LiS games since the first one, but I did like that one at the time. I have always been into these kind of narrative/your choice matter games, even if through the years I have gotten used to well, your choices not actually mattering much.

True Colors almost seemed like a step back to me compared to the first game. The empathy powers aren't as well used or fun as the time rewind mechanic, they are just there to see the thoughts of random people and sometimes click on things that will advance the plot.
Even when I'm not expecting my choices to ultimately matter much on these games it feels specially egregious here, there's barely any choices at all and the ones that are there don't even feel like they have enough weight at all.
The plot feels bot rushed and like it goes a glacial pace, every chapter usually takes 1 hour of unrelated shenanigans until you reach chapter 5 where they suddenly remember they are supposed to have a conclusion.
The characters also feel very bland, besides Alex whom I liked everyone else just kinda...there. There's definitely nothing like the Max and Chloe dynamic of the first game.
I will give it to the game that it does look pretty, and I really like the few segments that are slightly open world and they let you explore the town.

But yeah ultimately I think that it biggest downfall is being a narrative game where the narrative isn't particularly strong or interesting, and the characters can't really cover for it either, and the gimmick of having powers isn't even well used here.