No, it’s working correctly. What you are seeing is the air pressure precharge in the tank which is or should be set at 29-28 psi woth no water in the tank. When the water flows out down to 30 psi water pressure, the tank empties of water and you see 0 water pressure. As it should.
You should be using the tank drain to drain and flush the tank, the outside faucets will trap sand in their lines. The last little bit of water that comes out of the tank will contain the sand/dirt/rust, and going uphill from the tank won’t get the stuff out of the plumbing. You should call the plumber back to make things right. Plumbers and others that do this type work should know what they’re doing or not take on these jobs. The driller told you/him what had to be done and he didn’t do it, so why should you suffer alone, share it with him. Actually the driller should have developed (commissioned) the well as part of drilling it, but they don’t do that anymore as they once did because it takes time and they can’t charge for it because homeowners want to pay as little as ossible for their well. A well tha tis not properly developed usually has water qualtiy and low productions problems later in life; and that can start at ‘birth’ as we may be seeing here.
As to the colored water. That usually means you have (ferrous soluble clear water) iron in the water that is oxidizing in the plumbing creating rust (ferric iron). Get a water test done to see what all is in the water and how much of it you have. You may need a water softener or if the iron is higher than a softener can remove, an iron filter.
Quality Water Associates