How is a 41KB char array filling up 256KB of program memory?
The limitation here is the data type of the index of the array. That is int, and on an 8-bit system an int can hold a value in the range -32768 to 32767.

That means the biggest index number an array can have is 32767.

That limit cannot be changed. You're stuck with it.

However, there are some tricks you can use to expand it.  One is to use a larger data type than char and pack your data into it.  For instance, using unsigned int as your data type will give you a maximum of 32767 16-bit values. Each one can hold two bytes. That gives you a total capacity of 65534 bytes.

Using unsigned long (32 bits) would double that again.

It is then up to you to work out how to get to the individual bytes. Using the pgm_read_byte_*() function you may not see any difference. After all the start address is just an address regardless of type. Of course, you have to watch out for any differences in endianness when you have packed your initial data into the array...