Here is a screenshot I made when I first noticed this problem:
You can see clearly that I am criminal and yet my icon is still blue, and not red. Also I have station protection deactivated, so it should never have been blue in the first place. It should be orange, if anything.
You’re confusing your HUD and viewing markers with the Map Markers.
Hud and viewing ones change colors. blue, red, etc…
The Map ones are always blue.
Put a HORIZON module in a cpu slot… you wont need the map and you’ll see the ships in the visual and hud displays the way you want with the colors.
Its an over-the-horizon module and extends the ranges. Also tick the box in Options to show targets behind objects so you can see them also when hiding behind things.
You wont have a need to refer to that map so much to locate criminals while on sortie then.
(shakes head at the use of a map for anything else other then general layout and location of fixed objects)