I mean, people of color is a stupid term but of course it's not for the paranoid reasons you imagine. It's more that it's just a new way of saying "other."
"Colored" went from being a nicer version of "negro" which was a nicer version of that word, and then we had black, followed by African American, and now it's "people of color."
If you called someone colored it would be very insulting so how is "people of color" better?
In fact it's worse because it is used for anyone who isn't white. It's basically saying that whatever you are, if you're not white, you're part of this other group. It erases the individuality of various ethnicities and backgrounds and basically just says "other than default."
The people that use it are probably the same people that inexplicably think Mexican is a demeaning term and use Latinx instead. I mean, if the person is Hispanic and not from Mexico then Mexican is not the right word, but most people from Mexico are proud to be Mexicans. Making it a bad word definitely reveals the confusion and denial that many "liberals" try to hide.
So yes, you're correct, by accident. In a way. I guess.