Gnome Terminal version: 3.34.2-2.fc31
LS_COLORS from /etc/DIR_COLORS* depending on the value of $TERM. Since gnome-terminal sets the value to xterm-256color, DIR_COLORS.256color is used. However, the palette doesn't seem to update these colors.
LS_COLORS
/etc/DIR_COLORS*
$TERM
xterm-256color
DIR_COLORS.256color
Incorrect colors:
Correct colors: