JSON REST API WordPress only showing first 10 categories

This is normal behaviour, you’ve not accounted for pagination. The REST API returns 10 results per page by default, and can be configured to return up to but no more than 100 per page.

You may be tempted to try -1, but this will not work, 100 is the maximum results per page that can be requested for performance and scaling reasons.

WordPress provides 2 http headers indicating the total number of pages, and the total number of results across all pages so that you know how many requests are needed to fetch all results.

I strongly recommend reading the REST API handbook in the official documentation. This page covers how to use and control pagination, sorting, etc.