Material 2 md-chip Not Responsing to color Attribute

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I can't seem to get my chip to respond to my color selection and I don't know why.

<md-chip-list>
   <md-chip selected="true" color="primary">Test</md-chip>
</md-chip-list>

It shows up but its always gray. My primary color has always worked for other components. I have tried secondary and accent as well with no change.

Here is what I see in the console looking at the elements: enter image description here

Here are my dependencies in package.json: enter image description here

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