The IR LED's on most cameras generally operate independently of the camera itself and are usually controlled by the LDR as seen in the picture below, if the camera face and in turn the LDR never gets dark enough then the LED's will never be at full illumination, the fire may not be bright enough for the camera to see normally but too bright for the LED's to switch on.
Also on some of these types of cameras there may be a setting for the IRE threshold or sensitivity level and this will dictate the switch from colour to black and white so check this as well, some of the LED control options might also be adjustable in the menu settings but every camera is different.