That's because the correct GPU driver is missing so Windows defaults to the Microsoft basic display driver which only supports 16 colours on Windows XP.
You need to install the graphics driver from that PC manufacturer's website if it's a factory-built PC.
If it's a home-built/custom-built PC you need the graphics driver from either the graphics card manufacturer's website if it's for an add-on (PCI/PCIe) graphics card, or from the motherboard manufacturer's website if it's for an integrated GPU.