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I’ve seen over the past few years that Space Grey was a lot of people choice of colour for the MBP but I’ve noticed since the redesigned 14 and 16” has been released more people have been reverting back to the Silver again. Why do you think this is?
It's not true, so no reason to speculate.
 
Have you known the Space Grey to discolour at all in your time using it?
I currently have 3 Space Gray MacBook Pros - 2016 15" i7, 2018 15" i9/Vega 20 & 2020 13" M1. None of them have any type of discoloration. The 2016 looks exactly like the 2020. The ONLY thing I do see is some extremely small wear around the inner edge of the most used thunderbolt port on the 2016 & 2018. It looks like a very thin halo around the port in silver, where the coating probably wore away.

I also have a 2018 12.9 iPad Pro in Space Gray and the same is true about its USB-C port.

If you like Space Gray, go for it. This time around, I went for Silver for my 16" M1 Pro 32GB 2TB machine that I am impatiently waiting for...
 
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