Capacitor Variables theme does not get used

Question

I have upgraded from Cordova to Capacitor and using Angular. My themes in my variables.scss file are not being used. It is using the themes from node_modules/@ionic/angular/css/core.css instead.

So when "primary" is applied for the color below, it does not use the "ion-color-primary" set in the variables.scss file. It uses the color set in the core.css file.

<ion-header mode="md"
            class="ion-no-border">
    <ion-toolbar color="primary">
        <ion-buttons slot="start">
            <ion-menu-button></ion-menu-button>

What am I missing?

Folder structure has the variables.scss in src/theme

I have a variables.scss:

:root {
  --ion-color-primary: #007eae;
  --ion-color-primary-rgb: 0,126,174;
  --ion-color-primary-contrast: #ffffff;
  --ion-color-primary-contrast-rgb: 255,255,255;
  --ion-color-primary-shade: #006f99;
  --ion-color-primary-tint: #1a8bb6;
  --ion-color-secondary: #0cd1e8;
  --ion-color-secondary-rgb: 12,209,232;
  --ion-color-secondary-contrast: #ffffff;
  --ion-color-secondary-contrast-rgb: 255,255,255;
  --ion-color-secondary-shade: #0bb8cc;
  --ion-color-secondary-tint: #24d6ea;

capacitor.config.ts:

import { CapacitorConfig } from '@capacitor/cli';

const config: CapacitorConfig = {
  appId: 'myappid',
  appName: 'myapp',
  webDir: 'www',
  server: {
    androidScheme: 'https',
    allowNavigation: ['*']
  },
  plugins: {
    PushNotifications: {
      presentationOptions: ["badge", "sound", "alert"]
    },        
  },
  bundledWebRuntime: true,
  cordova: {
    preferences: {
      WKWebViewOnly: 'true',
      'android-minSdkVersion': '29',
      'android-targetSdkVersion': '34',
      'deployment-target': '15.5',
      ScrollEnabled: 'false',
      BackupWebStorage: 'none',
      SplashMaintainAspectRatio: 'true',
      FadeSplashScreenDuration: '300',
      SplashShowOnlyFirstTime: 'false',
      SplashScreen: 'screen',
      SplashScreenDelay: '3000',
      loadUrlTimeoutValue: '120000',
      ShowSplashScreenSpinner: 'false',
      AndroidLaunchMode: 'singleTask',
      AndroidXEnabled: 'true',
      AndroidPersistentFileLocation: 'Compatibility',
      StatusBarOverlaysWebView: 'false',
      StatusBarBackgroundColor: '#00527e',
      AndroidInsecureFileModeEnabled: 'true'
    }
  }
};

export default config;

angular.json:

{
  "$schema": "./node_modules/@angular/cli/lib/config/schema.json",
  "version": 1,
  "newProjectRoot": "projects",
  "projects": {
    "app": {
      "root": "",
      "sourceRoot": "src",
      "projectType": "application",
      "prefix": "app",
      "schematics": {},
      "architect": {
        "build": {
          "builder": "@angular-builders/custom-webpack:browser",
          "options": {
            "customWebpackConfig": {
              "path": "webpack.config.js"
            },
            "outputPath": "www",
            "index": "src/index.html",
            "main": "src/main.ts",
            "polyfills": "src/polyfills.ts",
            "tsConfig": "tsconfig.app.json",
            "assets": [
              {
                "glob": "**/*",
                "input": "src/assets",
                "output": "assets"
              },
              {
                "glob": "**/*.svg",
                "input": "node_modules/ionicons/dist/ionicons/svg",
                "output": "./svg"
              }
            ],
            "styles": [
              "src/theme/variables.scss",
              "src/global.scss",
              "node_modules/@ionic/angular/css/core.css",
              "node_modules/@ionic/angular/css/normalize.css",
              "node_modules/@ionic/angular/css/structure.css",
              "node_modules/@ionic/angular/css/typography.css",
              "node_modules/@ionic/angular/css/display.css",
              "node_modules/@ionic/angular/css/padding.css",
              "node_modules/@ionic/angular/css/float-elements.css",
              "node_modules/@ionic/angular/css/text-alignment.css",
              "node_modules/@ionic/angular/css/text-transformation.css",
              "node_modules/@ionic/angular/css/flex-utils.css"
            ],
            "scripts": [
              "src/assets/sql.js",
              "src/assets/base_64.js"
            ],
            "aot": true,
            "extractLicenses": false,
            "buildOptimizer": false,
            "sourceMap": true,
            "optimization": false,
            "namedChunks": true,
            "allowedCommonJsDependencies": [
              "qrcode",
              "moment",
              "date-fns-tz"
            ]
          },
          "configurations": {
            "production": {
              "fileReplacements": [
                {
                  "replace": "src/environments/environment.ts",
                  "with": "src/environments/environment.prod.ts"
                }
              ],
              "optimization": true,
              "outputHashing": "all",
              "sourceMap": false,
              "namedChunks": false,
              "aot": true,
              "extractLicenses": true,
              "vendorChunk": false,
              "buildOptimizer": true,
              "budgets": [
                {
                  "type": "initial",
                  "maximumWarning": "8mb",
                  "maximumError": "8mb"
                }
              ]
            },
            "ci": {
              "progress": false
            }
          }
        },
        "serve": {
          "builder": "@angular-devkit/build-angular:dev-server",
          "options": {
            "buildTarget": "app:build"
          },
          "configurations": {
            "production": {
              "buildTarget": "app:build:production"
            },
            "ci": {
              "progress": false
            }
          }
        },
        "extract-i18n": {
          "builder": "@angular-devkit/build-angular:extract-i18n",
          "options": {
            "buildTarget": "app:build"
          }
        },
        "test": {
          "builder": "@angular-devkit/build-angular:karma",
          "options": {
            "main": "src/test.ts",
            "polyfills": "src/polyfills.ts",
            "tsConfig": "tsconfig.spec.json",
            "karmaConfig": "karma.conf.js",
            "styles": [],
            "scripts": [],
            "assets": [
              {
                "glob": "favicon.ico",
                "input": "src/",
                "output": "/"
              },
              {
                "glob": "**/*",
                "input": "src/assets",
                "output": "/assets"
              }
            ]
          },
          "configurations": {
            "ci": {
              "progress": false,
              "watch": false
            }
          }
        },
        "lint": {
          "builder": "@angular-eslint/builder:lint",
          "options": {
            "lintFilePatterns": [
              "src/**/*.ts",
              "src/**/*.html"
            ]
          }
        },
        "e2e": {
          "builder": "@angular-devkit/build-angular:protractor",
          "options": {
            "protractorConfig": "e2e/protractor.conf.js",
            "devServerTarget": "app:serve"
          },
          "configurations": {
            "production": {
              "devServerTarget": "app:serve:production"
            },
            "ci": {
              "devServerTarget": "app:serve:ci"
            }
          }
        }
      }
    }
  },
  "cli": {
    "analytics": false,
    "schematicCollections": [
      "@angular-eslint/schematics"
    ]
  },
  "schematics": {
    "@ionic/angular-toolkit:component": {
      "styleext": "scss"
    },
    "@ionic/angular-toolkit:page": {
      "styleext": "scss"
    }
  }
}