TotalFinder is one of the first utilities I add on a new Mac.
I just bought a new 16" MacBook Pro with Catalina.
I haveTotalFinder running and the Finder window displays tabs as I desire.
But the colored labels are not functioning … just Apple’s default colored dot. I prefer TotalFinder’s complete labels 
FYI … looking forward to any upgrade.
Well, it should work.
But you have to first enable it in TotalFinder Preferences:
https://totalfinder.binaryage.com/colored-labels#mark-this-feature-mimics-old-finder-behaviour-i-implemented-this-option
You might want to send me your diagnostics file to support@binaryage.com:
https://gist.github.com/darwin/aad9b3f0eca7761c3e72d13e85496134
I could double-check if you have that setting really enabled and look at few other places.