Alacritty only partially shows colors in SSH session

Set COLORTERM=truecolor. For example by adding the following to .bashrc

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if [[ -v SSH_CONNECTION ]]; then
        if [[ "$TERM" == "alacritty" ]]; then
                export COLORTERM=truecolor
        fi
fi

Alternatively by passing down the variable with ssh -o SendEnv=COLORTERM, this needs to be explicitly allowed by the server though.