I wrote a couple of weeks ago about other problems and this is something that occurred then. I'm admittedly not yet sure if your recent changes would've addressed it.
The default installation of Alacritty has the issues as appears below: issues with /nix/store displaying and an unusual ading prompt. I tried clearing the Nix-definition of Alacritty and instead had homebrew manage it, and this isn't an issue then.
Furthermore, this prompt is "false" and typing starts to overwrite, but backspacing also just appends whitespace instead of visually removing the text (although it effectively clears the text).
Upon freshly opening Alacritty:
Upon typing:
