Sphag & Bag - only new leaves

[dianecty]

Hi all!! I put a miltonia in a ziplock bag with moist sphag to make it grow new roots. All of its roots were cut off due to root rot. After being there 1 month, I discovered that it is growing new leaves but there are still no roots. The new leaves are ruffly and so I added water to the sphag.

I also had to cut off 1 pseudobulb bec it became orange. Why does it do that? Some old sheaths are also orange.

What should I do? should I take it out of the bag?