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Is there perhaps some kind of legal thing where they turn off the red blood for the "teen" version?

That's Germany I think? I seem to remember playing Carmageddon with green blood and that was some kind of German mode?

Korea definitely has non-red blood in plenty of games. PUBG has blue blood in Korea for example.

Carmageddon 64 in Germany also replaced the zombies (which were already replacements for pedestrians) with dinosaurs. Truly bizarre.