- literally blue (painted blue or colored some other way)
- literally blue (skin blueish from lack of oxygen)
- he was really cold or something (exaggerated metaphor)
Or probably other stuff.
Like most things, you need more context to determine the relationship between the statement and reality. None of these meanings depend on the word "literally" it can disambiguate between two related statements but nothing in language can escape the idea of being used in a metaphorical context.
It always bugs me when people "correct" this totally fine use of language. We don't freak out nearly so much about similar words like actually, really, totally, completely, absolutely, etc being used in the same way.
It's no big deal. Metaphor is a core part of our language.