I have revised the Run Shell Script content to produce this output with the added PDF export included:

The default folders in macOS are blue, so not sure what you meant by that, and at any rate, I cannot change folder colors with a script.
Replace the entire contents of your Run Shell Script action with the following code:
#!/bin/zsh
: <<"COMMENT"
Do a recursive descent on a folder hierarchy gathering Pages document. Export these
documents from Pages as Word .docx documents (and PDF) into a Word folder at the file location.
If the Word folder does not exist at the particular folder location, then create it.
Tested: Ventura 13.0.1
VikingOSX, 2022-12-06, Apple Support Communities, No implicit warranty or support.
COMMENT
typeset -gi pagesCnt=0 docxCnt=0 pdfCnt=0
STARTDIR="${@}"
function pages_export () {
/usr/bin/osascript <<-AS
use scripting additions
tell application "Pages"
activate
try
set infile to POSIX file "${1}"
set wordOutFile to POSIX file "${2}"
set pdfOutFile to POSIX file "${3}"
set thisDoc to open infile as alias
with timeout of 1200 seconds
export thisDoc to file wordOutFile as Microsoft Word
export thisDoc to file pdfOutFile as PDF with properties {image quality:Best}
end timeout
close thisDoc saving no
on error errmsg number errNo
display dialog "[ " & errNo & " ]: " & errmsg
end try
end tell
-- unhide the exported filename extensions
tell application "Finder"
if exists (item wordOutFile as alias) then
set extension hidden of (item wordOutFile as alias) to false
end if
if exists (item pdfOutFile as alias) then
set extension hidden of (item pdfOutFile as alias) to false
end if
end tell
return
AS
}
function completion () {
/usr/bin/osascript <<-AS
use scripting additions
set DialogIcon to "/System/Library/CoreServices/CoreTypes.bundle/Contents/Resources/MultipleItemsIcon.icns"
tell application "Pages" to if it is running then quit
display dialog "Pages documents found: ${1}" & return & ¬
"Exported to Word docx: ${2}" & return & ¬
"Exported to PDF files: ${3}" with title "Processing Complete" with icon POSIX file DialogIcon
return
AS
}
# do a case-insensitive recursion finding Pages documents and sorting by name
setopt nocaseglob
for f in ${STARTDIR}/**/*.pages(.Non);
do
(( ++pagesCnt ))
# if there is no Word folder at this file location, then make one
[[ -d "${f:a:h:r}/Word" ]] || mkdir -p "${f:a:h:r}/Word"
# construct the full path to the word docx document and PDF to be exported
wordfile="${f:a:h:r}/Word/${f:r:t}.docx"
pdffile="${f:a:h:r}/Word/${f:r:t}.pdf"
pages_export "${f}" "${wordfile}" "${pdffile}"
# do we have an exported docx and PDF that is non-zero in size?
[[ -s $wordfile ]] && (( ++docxCnt ))
[[ -s $pdffile ]] && (( ++pdfCnt ))
done
# give the user statistics
completion $pagesCnt $docxCnt $pdfCnt