I am attaching a small project that demonstrates how the palette works.
The chart palette is not very intuitive, and you simply expect it to do something that it is not designed to do. See in the attached project that there are four series in total, two line series, two point series. The palette defines two PaletteEntryCollections, one for the line series with a red and green brush, and one collection for the point series with yellow and purple brush.
In the attached image you can see that indeed the line series got their colors based on their corresponding palette entry collection - one line is red, one is green. The same goes for the point series, both the point series got their colors from their corresponding collection, one point series is yellow, one point series is purple.
It is not expected for the points within a single series to get two different colors. Did I understand correctly, that this is what you need to do? Do you have a single point series and need to get alternating point colors?
If this is the case, I suggest you do not use a palette, you can get this via the DefaultVisualStyleSelector capabilities of the series. In the style selector you can check the Index of the data point and return one of two predefined styles. Let us know if this works for you.
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