From my understanding, this bug occurs due to how the game's engine stores entity information. There appears to be a breaking point where, after a large amount of entity data is stored, the game's engine runs out of memory for new entity information, which causes newly loaded textures to default to pink.
I've heard that the "Remove texture limit option" does not fix this issue, but may decrease the chances of it happening.
The best way to replicate this bug (keep in mind that this bug is rare and difficult to reproduce, as it only seems to occur after playing for hours) is:
• Connect to a large server with many custom textures and a high player count (The Hive is a great server for this).
• Continually load new chunks by moving between lobbies in the game.
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Thank you for your report!
However, this issue is Invalid.
Unfortunately we don't accept issues related to External Servers here on the bug tracker, but please add more details if you think this also affects multiplayer over Realms, LAN, or XBL.
I'd suggest contacting the server owner directly or seeking help on the Minecraft forums.
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Reopening for review. The issue should have been resolved with MCPE-105487, but if there are scenarios where this is still happening, it would be helpful to know the details about when and how this occurred, and how frequently.

Resolving temporarily as Awaiting Response. Is this still an issue in the latest version of the game?
This ticket will reopen automatically when you reply.

according to MCPE-176308, yes

As I know from my experience, this happens when you are rejoining the server many many times, and maybe there are other occasions when this happens but for me on my Windows 10 PC it occurs when rejoining many times.
Resolving temporarily as Awaiting Response. Could everyone experiencing this issue add more details about their devices (model and OS version for mobile devices, DxDiag file for PCs) in the comments?

Hi, so this issue was originally MCPE-105487 and for the most part was resolved after update 1.19.30, but it was only made less frequent/happens after much longer now rather than completely fixed/never happens. I play on Xbox Series X, OS Version 10.0.25398.3864, and it happens to me when I play the Hive for several hours, specifically their Murder Mystery gamemode. It takes about 4 hours of gameplay, where as before the original ticket was resolved before 1.19.30 it would happen after playing Murder Mystery for only 30 minutes. It does seem to happen on PC as well (using any driver/graphics card) after a few hours of server gameplay.

This still happens a lot and if you have resource packs that add a good amount of custom stuff it just gets accellerated, this really ruins the experience on very developed servers that need to use that amount of resources, this is for every platform, Windows, Switch, PS4/PS5, Android and IOS. Please we need this fixed ASAP!

can a mod maybe rename this issue as textures turn pink in general? as it does not happen only on featured servers
Reply from @unknown:
You can use the Mojira Discord to request actions like this on bug reports, as well as communicating with mods and helpers directly.

attached the fastest way I could manage to reproduce the issue not on a server

To provide even more info on this issue, I am attaching one more video also showing my ram and gpu memory usage since the recent preview showed an option to toggle the texture limit, but I do not think that is the root of the issue.
New experimental toggle added in Video settings menu to remove texture limit and load textures instead of using the "pink texture" called "Remove Texture Limit". Textures will continue to load until the system exhausts all available graphics memory

The cause of this issue is stated by a developer of The Hive over at ticket MCPE-105487
"The glitch is a memory-related issue, specifically with how player skins are handled. Seemingly, the client doesn't release player skins from memory when it is no longer needed. This leads me to assume that this results in the clients texture atlas/memory being exhausted, resulting in RenderDragon being unable to load/assign new textures."

This happens in your regular world along with realms if you use an excessive amount of addons.
It affects Blocks, UI, Skybox, and Entitys/Players.

I have tested with the latest snapshot quite a bit since the pink texture issue has been mentioned, does the experimental option in 1.21.0.22 do something else too besides removing the limit? after enabling it and testing with a pack I have to reproduce the pink textures, the game leaks memory super fast and crashes with it disabled same as with all the previous versions, enabling it makes it run totally fine, a memory leak still seems to be there but not to the extreme that you get when pink textures start appearing. I have left the game running for hours and everything seemed to run totally fine but I do have a pretty good pc so it's a bit hard to test if it would actually crash with it as mentioned in the log.
tldr
when "Remove Texture Limit" is disabled you basically get a crash after loading into the world with the pack and with it is enabled you can play totally fine for hours. is there some underlying fix implemented by the toggle?

@batmanstanley this ticket is for textures turning pink after playing for long periods of time on featured servers. The specific issue you mentioned is being tracked at MCPE-180342

In my case it happens to me in a solitary world, which I play on LAN happens to me with chests, mobs, etc.; The person I play with on LAN plays from a Samsung S23FE android and the problem is also generated from the cell phone. On my PC I have a Ryzen 7, 16 RAM and a GTX 1050Ti

This issue might be fixed once and for all in 1.21. A few weeks ago, in Preview 1.21.0.22, Mojang added an experimental toggle under video settings called "Remove Texture Limit" which essentially removes the texture limit responsible for causing the pink glitch and continues to assign the game new textures, rather than hitting a texture limit and assigning it pink textures.
Stated on Preview 1.21.0.22 changelog:
New experimental toggle added in Video settings menu to remove texture limit and load textures instead of using the "pink texture" called "Remove Texture Limit". Textures will continue to load until the system exhausts all available graphics memory
It can also best be assumed that this toggle will fix MCPE-180342 as well.
However, this toggle is experimental, and we don't know that performance issues after awhile while having it enabled aren't possible.

@exhila the experimental toggle just allows until the threshold is reached due to system limitations. the error would still happen just now it would be at a lesser rate. maybe there is some enhancements renderdragon could get to help alleviate it more?

Would we be able to get at least the toggle as something that is persistent between reboots before 1.21 release? Since using it actually does help devices that are definitely capable of running way more textures function normally.

THE NEW OPTION DOES NOT RESOLVE THIS BUG IN THE CONSOLES!

Can confirm in all versions since 1.20.32.

I cannot even see the game anymore. This is ridiculous

Affects 1.21.51.

Could be reproduced with using mb excessive addons. (Decocraft,Spongebob,Furniture By XP Games) Time played isn't the main dependent but memory space is. If a Xbox series x is having issues with this its clear that something is wrong under the hood that they avoid addressing.

I can confirm. Please fix this! Affects 1.21.51 and freeze the OS. The disk & CPU activity its high after loading.

Here is what happens sometimes joining a realm with the amount that produces this texture error not even loading into the world. All marketplace add-ons, With the official 10 player realm options. Having texture limit off on the Xbox series X. Its insulting that they do weekly Add-on drops yet do nothing to fix an issue since before the release of them that has been more common due to the release of Add-ons.