by that logic 90% of fabric mods should be called forge mods
and that is not very nice since any bug in the "forge" version could be either a bug in connector or your mod which can make debugging a pain

It's perfectly valid to mark as forge with connector as the mod works perfectly on it to make easier for pack authors to add it to Forge packs ready to go.

not when i tried in 1.20.1

unless it is somehow incompatible with minecolonies/ one of it's dependicies

It's likely Minecolonies as I'm using my this mod and my other Fabric Connector marked mods fine in my own 1.20.1 modpack.