I noticed in Rio (v0.26 woo!) the cursor color can't be set via an OSC sequence.
# Change cursor color via named color
printf '\x1b]12;red\x07'
# Set cursor color by hex color
printf '\x1b]12;#FF0000\x07'
# Reset cursor to default color
printf "\x1b]112\x07"
If it helps, this is what Sequin says about it.

I noticed in Rio (v0.26 woo!) the cursor color can't be set via an OSC sequence.
If it helps, this is what Sequin says about it.