[WIN32SS] Color circle won't render correctly in PenAttention v1.4

ReactOS ver: 0.4.15-dev-6526-g8d35887
Arch: x86 tested in GCC
Software tested: CursorPenAttention and the PDB, source and debug dlls in here

Steps you need to reproduce:
1. Install mono from RAPPS.
2. Run the software entitled CursorAttention32

Description of the bug: The circle that pairs the cursor is not rendered correctly. ReactOS renders a grey square grey.png.

What should it render:
Same as XP or Win32SS frankenstein ReactOS, circle around it with color.
color.png

Log: CursorAttention32-bug.log

Note: The first time the circle is rendered in master, the colored circle appears "correctly" first rendered in the position 0,0 in the screen, and if you refresh, that render disappears.

Unimplemented layered window? Or something else?