The net is telling me that since 1975 the license plate format in Colorado is XXX-XNN where Xs are letters and Ns are digits. Having a plate entered into the watch list with multiple times with all variations of substituting Os for 0s and 0s for Os should not cause a problem.

That suggests that this involves a plate that does not come from the normal sequence you get when you let the state choose your plate. It looks like most of their collector and special use plates also should be safe [1].

That's probably why we haven't heard of a lot of people running into this. It seems you probably would have to have a vanity plate that includes 0 or O, and someone else would have to have a vanity plate that differs from yours only by changing 0s to Os or vice versa.

[1] https://dmv.colorado.gov/other-license-plates