The MyColorado FAQ explicitly states that an officer cannot take your phone, even if they think your digital ID is fraudulent. This whole article is a ton of fear mongering.

no offense but: even if you were to grant the notion that this is an exaggerated problem–cops are not well known for their rigorous adherence to the law or proper legal procedure. they routinely fuck up and violate civil liberties, up to and including murdering people for arbitrary reasons. and unless police are held accountable (which they almost never are for a variety of systemic reasons), what a state says they cannot do is effectively meaningless. it’s just words on a screen, really.