Using a pack containing emissive.properties and at least one emissive texture renders the tint on undyed Wolf Armor items (not entity models) as a solid black, rather than transparent. Issue is not present for other dyeable items, like Leather Armor or Leather Horse Armor. Item texture displays correctly when emissive textures and emissive.properties are removed from the pack.

Without a pack containing emissive textures; normal behavior

With a pack containing emissive textures; unexpected behavior

Observed with only Continuity, Fabric, and Fabric API installed.
latest.log

Example pack contains an emissive.properties file and a corresponding .png texture under /textures/block/

Also confirmed to not occur with just Fabric+Fabric API installed; only occurs once Continuity is enabled.

Thank you for the high quality report. This is not a Continuity issue but a previously unknown Indigo issue (Indigo is part of Fabric API). I have opened an issue on the Fabric API repository (FabricMC/fabric#3853), so use that one to track the problem; I will close this issue. Note that it is expected that this issue is not visible without Continuity.