Xephyr nested X-server seems to ignore backing store option

I have been trying to use Xephyr for running an old legacy application that
doesn't function properly at color depths greater than 8 bit. I have been
exploring this as a possible alternative to running X in 8-bit color mode,
primarily because X does not seem to work properly in 8 bit color mode
anymore. I get a grayscale display instead of 8-bit color. Xephyr seems to
work perfectly for what I want to do, with the exception of the backing
store. I am running Xephyr with the options +bs -wm, however when I open a
menu on the legacy application or move some other screen object, the screen
behind it ends up either staying black or certain elements going missing
until I do something that causes the entire display to be re-drawn. While
re-writing the portions of the application that don't play nice with color
depths beyond 8 bits, I would like to get this working without requiring
updating our software if possible as we have many different locations using
their own customized versions.

I have verified that the backing store option does work for Xorg, both if I
run Fedora normally, that is load Gnome and use that as a display manager,
and if I just start Xorg manually with no display managers.

Any insights or help on getting this working would be appreciated.

Thanks in advance,

Doug K
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