One of the many apparent changes in the 1.60 visual update is that the RVMAT files have a new setting. The problem though is that this setting is not being placed orrectly in new RVMAT files upon terrain layer generation. The RVMAT setting in question is PixelShaderID="TerrainSNX"; This is what is compatible with the new visual update package and provides a good quality image with accurate color representation. However, Terrain Builder is putting out PixelShaderID="TerrainX"; in all newly generated RVMAT files, which is what used to be correct pre-visual update. As such, the old setting being present in RVMAT files causes colors and saturation levels to be visually displeasing and generally inaccurate.
I was able to verify that this was the issue by replacing PixelShaderID="TerrainX"; with PixelShaderID="TerrainSNX"; in all of my RVMAT files and comparing the visual difference. Reference images have been included below for review. It clearly makes a large difference in visual quality and coloring.
In short, TB needs to be updated to output the correct values in RVMAT files upon layer generation to ensure compatibility with the new rendering techniques and settings.