Not trying to burst your bubble but no, you're not, they don't blend and match surroundings, please don't spread misinformation.
They will not turn checkerboard on a checkerboard, or red on a red background, but as Trace said, they do actually make some changes (within their ability) to match their surroundings sometimes. This isn't really seen in the bigger species as much as the smaller one. My pygmies do this on a regular basis. On the dark green plant they turn olive green. On the light green plant they turn a pretty light green. On the grey rocks they turn into a muddy brownish grey. On the stick they turn stripy brown. That's as much ability as they have, but within that range they can chose to "blend". They don't always, but to say they do not ever is a bit false. It's a natural adaptation to hide in their environment. Their moods will cause color changes much more reliably and drastically. Dark colors mean stress. In this case, I would be betting it is more stress than blending to match your clothing.
Brittbrit - Your chameleon is full grown, or close to full grown btw. It's not a baby. As said, it is a wild caught chameleon and needs to be handled absolutely as little as possible (like once a week) for the first few weeks as it gets used to its new home. Too much stress in this period, like being picked up by a monster that wants to eat you (that's what your little cham is thinking) can put so much strain on her already tired body that she can get sick and die. The fact that she seems cool about you holding her all the time is actually her so scared that she hopes you just leave her alone and go away. They are very delicate at this stage. As said before, the dirt should be removed. You can put your plants into pots with the dirt covered by rocks bigger than your cham's head (so she doesn't eat them) to keep them alive. The dirt doesn't help with humidity as much as it helps bacteria and mold grow and possibly harm your cham.
As said in your other thread, 100 degrees is much too hot and she is probably digging in the dirt to try to escape the heat. Low 90's should be the absolute max temperature in her cage, and the bottom should be at least 10 degrees cooler than the top. Since they don't sweat like us or pant like dogs they need to have cooler areas to cool themselves off. Without that they can overheat and die. Since that cage is so small and glass you may only be able to have the UVB on to keep it from overheating. The UVB must be on at least 10 hours every day. And at night there should be no light at all. Her cage will not ever get cold enough to need heat at night as it will hold residual heat from the day enough to keep it over 60 degrees. Mine do. In the forests of Africa and Madagascar it gets cold at night and there are no lights for them. This is what they need.
She must have live bugs to eat - she cannot eat the dead ones. Mealworms are not good to feed. The links right below in my signature should help you get some more info on your new little one! Feel free to ask more questions.