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FYI a while ago I converted a Sublime Text Railscasts theme to Vim and I had washed out colors when comparing sublime vs iterm3+vim, so I did this hack. I am not sure this applies to your case since you're not converting a theme from sublime. Unless kitty and alacritty don't use the same colorspace as sRGB iterm, which I would find surprising but if so maybe we'd be onto something or a potential iterm2 bug.
I've opened a feature request on iTerm2's tracker if you want to follow there!
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