The bug has already been fixed, and according to the Unity team the fix will be merged into an upcoming release. I’d expect Unity 5.3 or some 5.2 patch release.
FYI, the effect is related to the graphics API in use. In DirectX 11 the gizmos are renderer as random colors. DirectX 9 don’t display gizmos at all. My own workaround for now is to selecting OpenGL2 as graphic API. Here the behavior is like in 5.1, but gizmos are drawn in white.
You can change the graphics API at Edit > Project Settings > Player > Other Settings:
Untick the option “Auto Graphics API for Windows”. A list of graphic APIs appears.
Click the “+” sign and add the OpenGL2 option.
Back in the list, move OpenGL2 to the top position. Click Apply when asked.
nbg_yalta: Hey, thanks for that info! I’m so used to working with 2D icons, that testing this didn’t even cross my mind! Good info, it’s even better fix!