Excellent question. I, too, have had much better luck after switching to IINA.Which brings me to the question: Why is VLC still using this ancient framework?
I don't see any 3.3.0 builds but I got the 3.0.0 2016-11-28 nightly and the colors are still washed out.The latest 3.3.0 2016 11 28 nightly built is OK.