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Does anyone know how to raise this option from 30 colors to 50 colors?
You may change the setting in the "Palette" dropdown menu to "Automatisch" or "Vollton".
Currently it is set to "Beschränkt".
Thanks for reaching out. In addition to correct suggestion given by Kurt, please check out this help article(https://helpx.adobe.com/be_en/illustrator/user-guide.html/be_en/illustrator/using/image-trace.ug.htm...)to know more about Image Trace.
Hope it helps.