If any other alacritty on macos users were looking for a workaround: https://github.com/alacritty/alacritty/issues/93#issuecommen...

Apparently an option_as_alt option should also be introduced in the next release.

TL;DR - Esc+C works (yes you read that right, Esc+C)

It's also possible to "fix" the keyboard via ukulele - especially international layouts come with a lot of cruft under option-key.

Another possibility is to fix it via eg the terminal emulator - but that doesn't work for global hotkeys like window management with yabai via skhd.

See my comment on lobsters: https://lobste.rs/s/nvoikx/helix_notes#c_m8guuh