Yes, I learned this rule a few years ago. I was a newbie winter Villager, and we were a foursome and they let a "Lifestyle" twosome out. I suggested we let them through and was educated to the rule. The explanation I got was exactly as JMintzer described; that to keep track of who is where, they keep track of the cart colors.
The only thing the Ambassadors really care about is the "time par" written on the card. If you fall behind it with open holes ahead, they might give you a gentle nudge. In fact this happened to us just yesterday, as we had gotten 8 minutes behind the already generous "time par". I actually appreciate the nudge, because I can't stand being the slow group, and I don't like having to be the one to ride herd on my foursome. Much more congenial within the group if the ambassador does it.
It's not a perfect system, but it ain't bad, IMO.
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