Finally, after months, I figured it out. I thought I should share my findings in case anyone else was fighting the same battle.
Git for Windows comes packaged with its own versions of a number of programs. Apparently, Vim is among them. Doing a :echo $VIM
shows that when Vim is started by Git, it is pointing to C:/Program Files (x86)/Git/share/vim
. This Vim install seems different than my full Windows Vim install.
At this point you could solve the problem several ways, conceivably. One would be to repoint the VIM environment variable. Instead, I changed the path above to be a symbolic link to my actual Vim install:
C:\Program Files (x86)\Git\share>mklink /D "C:\Program Files (x86)\Git\share\vim" "C:\Program Files (x86)\Vim\"
symbolic link created for C:\Program Files (x86)\Git\share\vim <<===>> C:\Program Files (x86)\Vim\
Now the syntax highlighting is working, the colorscheme looks good, and it is much easier to review code.