No, you cannot be burning muscle with all the protein you are taking in.
You have been on Induction and lost TWELVE POUNDS! Congratulations. I have to agree with Zuleikaa above: don't live your life by what those Stix say. Ignore the colour and go by how you feel. And how your clothes fit.

If you are not hungry, you ARE in ketosis. And after Induction's rapid loss, it is normal to go for a week without losing as your body adjusts and catches its breath after all the sudden changes.

It is also true that you will NEVER AGAIN lose as much weight in 2 weeks as you did on Induction because you have shed the excess water your cells were holding along with some fat.

You are also getting well along toward your goal, so the loss rate will slow and you may have to live patiently through some weeks later when you don't lose anything although you ARE eating LC. Keep on with it, because the loss will eventually start again.

I don't think you are a Turtle at all. Most people lose 10% of the total they hope to lose on Induction and here you have lost 30%. You are far better than average.