This PR fixes #88231

The simplest solution to change this line:

if (originalText === this.colorPresentations[i].label) {

to this:

if (originalText.toLowerCase() === this.colorPresentations[i].label) {

src\vs\editor\contrib\colorPicker\colorPickerModel.ts:67

Now when I hover over #1F1F1F it will be recognized as #1f1f1f and when I edit color with the picker, a color will be replaced with lowercased hex representation