Can't find colorscheme when sourcing vimrc file

[petobens]

Consider the following minimal vimrc

set nocompatible

let $CLOUD_DIR = expand('$HOME/OneDrive/')
let $DOTVIM = expand('$CLOUD_DIR/vimfiles')
set runtimepath=$DOTVIM,$VIMRUNTIME,$DOTVIM\after

if has('vim_starting')
    execute 'set runtimepath+=' . expand('$DOTVIM/bundle/neobundle')
endif
call neobundle#begin(expand('$DOTVIM/bundle/'))

" Normalize bundle names
let g:neobundle#enable_name_conversion = 1

NeoBundle 'petobens/heraldish', {'frozen' : 1}
NeoBundleFetch 'Shougo/neobundle.vim', {'name' : 'neobundle'}
call neobundle#end()

" Set file type stuff to on
filetype plugin indent on

colorscheme heraldish

Now open GUI Macvim (or terminal Macvim), edit (i.e open) this minimal vimrc file and then run so %. I get the following error

When the vimrc file is source the colorscheme is not found. I expect the colorscheme to be found.

[petobens]

I also tried with terminal vim (not macvim) and I get the same error.

[Shougo]

I think "heraldish" plugin is not installed. You must execute :NeoBundleInstall

[petobens]

I think the colorscheme is installed. I tried with the following minimal vimrc:

set nocompatible

let $CLOUD_DIR = expand('$HOME/OneDrive/')
let $DOTVIM = expand('$CLOUD_DIR/vimfiles')
set runtimepath=$DOTVIM,$VIMRUNTIME,$DOTVIM/after

if has('vim_starting')
    execute 'set runtimepath+=' . expand('$DOTVIM/bundle/neobundle')
endif
call neobundle#begin(expand('$DOTVIM/bundle/'))
let g:neobundle#enable_name_conversion = 1
NeoBundle 'petobens/heraldish', {'frozen' : 1}
NeoBundleFetch 'Shougo/neobundle.vim', {'name' : 'neobundle'}
call neobundle#end()

filetype plugin indent on
syntax enable

set termguicolors
if neobundle#is_installed('heraldish')
    colorscheme heraldish
endif

And when I run so % I still get:

[Shougo]

OK. I get the problem. It is your vimrc error.

set runtimepath=$DOTVIM,$VIMRUNTIME,$DOTVIM/after
if has('vim_starting')
    execute 'set runtimepath+=' . expand('$DOTVIM/bundle/neobundle')
endif

You must not reset 'runtimepath'. The correct is this.

if has('vim_starting')
    set runtimepath=$DOTVIM,$VIMRUNTIME,$DOTVIM/after
    execute 'set runtimepath+=' . expand('$DOTVIM/bundle/neobundle')
endif

[petobens]

Awesome! Thank you so much!!!