Hi, thank you for contacting JustAnswer.com. My name is Russell. I will do my best to provide the right answer to your question.
I regret hearing about the playback-in-black-and-white problem, because I have to warn you, there is some bad news coming up about that.
This page on Amazon, devoted to your model of JVC device:
has three posts from people who were disappointed at its playing tapes in black-and-white... actually one of them said it only recorded tapes in black-and-white... and that's a very distinct bad impression from a lot of commenters on this device.
One said they searched the manual and found no indication of any way to correct this issue.
I would advise you to return the JVC device, if at all possible, for a refund, or at least an exchange for another that is fully working. (It might just be a very frequent problem in a very bad factory run with poor quality control and there might be others in the same model that do render color from VHS tapes... perhaps.)
If that is not possible, a factory reset procedure might doubtfully straighten out the problem... if such a reset procedure is published somewhere. If you cannot return it nor exchange/refund it, then would you like to try this?