Deployment fails with error [RecordType XXX] Picklist value: Y in picklist: xxxx__c not found

Root cause:

This error means that one of the values included in the RecordType to be deployed does not exist in the picklist field in target environment.

Fix:

Include the picklist field to which the value belongs within the deployment selections.
If you are using a Global Picklist Value Set in this field, you will have to include it in the deployment.

How did we do?