The answers so far have made good points, although they’ve left out something important: Communication and Identification.
Besides looking snazzy, for likely the entire history of warfare uniforms served as identifiers for soldiers. Their role, rank and even country. This largely started to change with the invention of the radio and the advancements to make it man portable.
The radio, once advanced enough to use at a small unit level, allowed armies to keep better track of their units. This helped reduce the risk of friendly fire and made the more visual and overt uniforms redundant or even a danger
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