I agree with maestro, here: they're participial verbs. But I also think Fennel Giraffe has a point, but the grammar's more complicated than simply calling "tossing" etc. adjectives. Here's how I read it:
high, yellow flames, tossing light on the stuccoed walls, the blue satin bed sheets, the illuminated flooring glistening in an oaky shade
This is a noun phrase with "flames" as its head. There's pre-modification and post-modification.
The pre-modifier consists of a co-ordination of two adjectives: "high" and "yellow".
The post-modifier consists of a participial clause: "tossing light..."
Now, the participial clause itself:
tossing light on the stuccoed walls, the blue satin bed sheets, the illuminated flooring glistening in an oaky shade
The clause's subject is not expressed; it's implied. The clause takes the subject from the noun-phrase it modifies. (An alternative would have been a relative clause: "which tossed..."; then "which" would have taken the subject slot.)
The clause's verb, "tossing", is non-finite; i.e. it does not inflect for tense or person. (In a relative-clause it would be finite: "which tossed...", taking the past tense.)
"light" is the object of "tossing", and everything that comes after the object is an adverbial, expressed by a preposition-phrase with multiple co-ordinated objects:
on (a) the stuccoed walls, (b) the blue satin bed sheets, (c) the illuminated flooring glistening in an oaky shade
All three objects are again expressed by noun-phrases, the last of which again contains a post-modification in the form of a participial clause ("glistening in an oaky shade").
I'm not quite sure how to analyse the syntactic function of the entire noun-phrase. It's almost a displaced appositive (which should normally come right after the noun it describes further).
So: maestro's re-write, IMO, changes the entire structure. Instead of a single noun-phrase with lots of embedding, we have three clauses. In the original, the candles via their light control the entire excursion through the room. The re-write shifts the focus from the candle to the room. What we want depends on how we're going on. The original will have an easier time to return to the candles and the expense. The re-write will make it easier to skip to setting-induced action. The re-write is certainly easier to read, in that it requires a shorter attention span (as you don't need to keep the candles for syntactic reference in you mind). Personally, if I were going for the re-write, I'd probably not co-ordinate the three clauses with a final "and". Instead I'd replace the em-dash with a fullstop, and just make the three clauses three sentences of their own. (However, I strongly suspect that I'd prefer to keep the original - although it's context that matters.)
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As for the "the landscape bathing in a soft pearly glow": this is intriguing. I think it's the equivalent to:
The dog approached me wagging its tail. --> The dog approached me, its tail wagging.
So a simpler construction might be:
the sky had flushed deep violet, bathing the landscape in a soft, pearly glow
But the original construction is really common enough, I think. I didn't notice anything odd about it.