Designs do not appear on any of the AI cars. Drivatar designs are turned on.
Give it some time. Designs have to be made or imported from other versions of the game.
I am not sure if this is the reason that all cars have the same colour (if they are the same model). For instance, if there are four Lambo Miuras they are all green, if there 5 Ferraris, they are all red, and so on. This is realy boring!
By the way, at Forza 6 you had the designs from the very first day (but they were ugly as hell…).
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Correct. This is a BUG and not a matter of there not being any designs.
Anyone experience the same on PC? Is there a fix?
Bug or not they seem to have much bigger bugs to smash for now.
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Still, a bug has to be reported. 
But fixing bugs like no AI drivers in private lobbies should take priority.
Can verify - not only are there no liveries showing, but all the cars of the type are the same colour! Really boring looking. This must be a bug.