Favourites drop down menu

The behavior described (favorites suddenly appearing in black and white with altered colors/icons) matches display or accessibility settings changes rather than a problem with the favorites data itself.

Based on similar issues in Microsoft Edge and Windows:

1. Check Windows color filters
   1. Open Settings > Accessibility > Color filters.
   2. Make sure Color filters is Off and no filter (such as Grayscale) is selected.
2. Check high contrast / contrast themes in Windows
   1. In Settings > Accessibility > Contrast themes, set Contrast themes to None.
   2. Apply the change and reopen Edge.
3. Check Edge accessibility color settings
   1. In Edge, open Settings.
   2. Go to Accessibility.
   3. Turn off options that force page colors, such as Page colors or similar settings that override site colors.
   4. If available, enable Only apply page colors when high contrast themes are on so Edge does not force high-contrast-like colors when Windows is in a normal theme.

If the issue started after a recent update and these settings are normal, repairing or reinstalling Edge can also help, but in the referenced cases the problem was resolved by adjusting accessibility color options rather than changing favorites or sync.

References:

• Screen turns black background with white text. - Microsoft Q&A
• how to fix the white box around the texts in edge browser after recent update - Microsoft Q&A
• The latest windows update broke the graphics for Microsoft Edge - Microsoft Q&A