The colors in Resident Evil 7 are *completely* off

This seems to be a common bug.

• Apparently, you can fix the issue by changing HDRMode=1 to HDRMode=0 in the re7_config.ini file, under the header [Display].
  The file can be found in the Resident Evil 7 game folder (under '/Steam/steamapps/').

The issue was caused by "subsurface scattering", which according to the game's description "improves skin rendering"... this can be a bug in Nvidia's drivers (436.48 version currently installed) or in the game.

comparison:

enabling reflections also changes the look of the scene significantly: