Debugging the snippet yields this (in red color):
(/home/jansorg/test.bash:2):
2: RED=$''
bashdb<0>
But it should have printed the source line unchanged, i.e. as RED=$'\x1b[31m'.
I tried to fix this, but couldn't find the place where the source line is printed (in lib/hooks.sh?).
If you pointed me to the right source, I'd try again to fix this.
#!/bin/bash
RED=$'\x1b[31m'
RESET=$'\x1b[0m'
read -e -p "Please enter a name: " -r NAME
echo "The name is $RED$NAME$RESET!"