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Here's my solution - it seems to be different than most (I removed the duplicates before creating new IDs), but I am sticking to it:
Fun challenge! Pretty sure I could have used fewer tools, but oh well.
Here is my submission; I got a slightly different output because I was trying to automate the workflow, so I have 4 colours in the output for New ID 1533.
The hardest part of this challenge was matching the given solution. I had eliminated duplicate rows and duplicate colors and had to go back and remove all that to get close. But one row in the solution somehow lost the size that was provided in the source data. I drew the line at removing that value just to get an exact match.
Here is my solution: