Originally Posted by Heran_Bago
It's more likely the other way around. Sonic Crackers later became Knuckles' Ring Star, and development was switched over to the 32X. We don't exactly know what team made Chaotix or Crackers, as Yuji Naka keeps that information classified in all interviews asking.
I personally think it is somehow connected to the MARS color format which Sega stole from Nintendo's SNES (RGB 555, intel format). Although without a BIOS source code or SNES dev kit, this can't be proven at a technical level. We do, however, have a 32X SDK. =P But that issue of color formats on non-native hardware is off-topic. ISOs = bad.