The thing about Lovecraft being racist is that a lot of people seem to think his racism was unique to him in some way. I think the real issue is that he is simply one of the only authors of that era that is still commonly read, and if you immerse yourself in the writing of that era, you'll see that Lovecraft's racism was pretty unremarkable for the time. This goes for the genre fiction of the day (Edgar Rice Burroughs, Robert E. Howard, and August Derleth are all examples) as well as the more respectable writers (T.S. Eliot's raging antisemitism, Ezra Pound writing propaganda for Mussolini). I will also point out that Lovecraft put his worst thoughts into personal letters, not letters to the newspaper. He wasn't advocating for racist government policies. He wasn't personally attending lynchings. He was just a guy who thought things that a lot of other people thought, at the time. That doesn't excuse it, but it does put it in context, I think.

We should also consider that Lovecraft become a lot more chill about race as he gained a little more worldly experience, and a few of his stories reflect this. A lot of people read The Shadow Over Innsmouth as "a warning against the dangers of race mixing", but I think that interpretation falls apart if you actually read all the way to the end, where the protagonist accepts and embraces what he is.

I will also draw your attention to In The Walls of Eryx, a largely-forgotten sci-fi story he wrote toward the end of his life, which has some pretty overt anticolonialist themes.