Consider this simple example (which displays in red):
echo -e "\033[31mHello World\033[0m"
It displays on the terminal correctly in red. Now consider:
watch echo -e "\033[31mHello World\033[0m"
It does not display the color.
Note: I am aware that it is easy to write a loop that mimics the basic behavior by clearing and rerunning. However, the clear operation causes the screen to flash, which does not happen under watch
EDIT: Originally this question specified escape sequences rather than vt100 sequences, but that is not really what I am after, and was solved with single quotes.