Hate to break it to you, but the brighter palette is completely incorrect. The white renders them useless because it's the same as MS Paint's.
See this? It's from Taxman's port of Sonic CD. This is the correct palette. CD 96 and Sonic & Knuckles Collection are both like this.
Whatever setting your emulators are using. You have the brightness up way too high.
My rips were done using GENS' and with its rendering set to RAW, which matches the palettes of the ports.
EDIT 3: Now it's done.
See this? It's from Taxman's port of Sonic CD. This is the correct palette. CD 96 and Sonic & Knuckles Collection are both like this.
Whatever setting your emulators are using. You have the brightness up way too high.
My rips were done using GENS' and with its rendering set to RAW, which matches the palettes of the ports.
EDIT 3: Now it's done.