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I have a question. Our users are using Excel that they connect to Salesforce report but Salesforce truncate the long texts to 255 chars. I have tried some other tools but there seems to be the same issue. (They do not want to use classic salesforce export for some reasons) So I have a question if somebody found some workaround or some other tool that can bypass salesforce default text truncations.

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Not sure of other tools but as per the update from the Salesforce product development team on the Idea, the workaround is to export reports as Details Only (CSV format), as that format does not have any character limits.

"The reason we have these limits in place is because it degrades performance to display that much data with the volume of real-time reports being processed across our customer base. Our reports team is currently working on performance enhancements for the next release. However, we do plan to look at this as soon as we make improvements in performance. In the interim, you can export reports as Details Only (CSV format), as that format does not have any character limits."

Also see related Text fields are truncated when you import and export records

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