grep color in bash

I'm having trouble getting grep color to work correctly in bash. Instead of highlighting it inserts [01;31me[K and [me[Ke into the text output.


echo "AAAA
TTTT" > test.txt
grep --color=always -E "^|AAAA" test.txt


## e[01;31me[KAAAAe[me[K
## e[01;31me[Ke[me[KTTTT

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