I.. don't think that's true at all. Ketones in your urine is indicative of ketosis. Smell of alcohol on breath is indicative of ketosis. Urine color is not an indicator for ketosis, it's an indicator for hydration.
You are correct. Urine color is an indicator of hydration. But sugar in your urine will cause your urine to be cloudy and more opaque. I've noticed that when I'm in ketosis that my urine is super transparent (just looking at transparency/opaqueness, not at color).