The pink glitch appears very often when ray-traced graphics mode is enabled.

Pink glitch appears very often when RTX is enabled. Joining the server, loading into the world can cause pink glitch to appear, so terrain atlas or most entity/environment textures would be replaced with pink colour. The same think doesn’t happen with other graphics modes. If you have succcessfully triggered the pink glitch in ray tracing, and you try switching to other graphics modes, the pink glitch will be gone. Once you try to go back to ray-traced graphics mode, the issue will be back.

Note: some players report that their game might crash instead of showing the pink glitch issue. Other player say that pink glitch might have not just pink, but other colours, like purple, orange, gray, green, blue. I have attached all screenshots I have found.

Additional thanks to locaaality for finding orange, green, blue and gray variants of pink glitch issue.