Are you talking about how a lot of the colors look washed-out and flat?
If so, I think it is because the ambient bounce light is set too high and the contrast is too low.
During lighting, the lights in a scene are supposed to represent in-game light sources, like lamps, fires, the sun, etc. Some engines, that don't do this dynamically using existing light, require that you also add an overall ambient/bounce light to raise the general light level a bit to represent light that is being reflects and bouncing around everywhere.
When there is too much ambient light, in addition to the other lights, everything tends to look washed out because some surfaces are receiving too much light, and also objects look flat because that extra light removes a lot of the shadowing/ ambient occlusion.
If you take a sphere, where you can see the contour of the form, and then add a bunch of light, the lit parts would wash out and the shadows would lighten, leaving what appears to be, more of a circle than a sphere.
I can' tseem to decipher the codewords they use in the .ini files to determine what does what. I would like to drop the ambient light and raise the contrast a bit.
This may have been a simple oversight as they were making last-minute tweaks, like maybe changing one number from 9 to 10, but accidentally hitting 0 twice and ending up with 100 of ambient light intensity.