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Tested Darkstar on a VirtualBox (7.0.4) VM. Can't reproduce the display issues, the live system nicely defaulted to 1280x800 and same with the installed and fully updated system. The display settings go up to 2560x1600. VirtualBox guest additions came preinstalled.
Can't point out where the message on color depth comes from, though, as I didn't see such message. I assume it's either an issue with your VM or the guest OS configuration.