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Looks like limit is set here:
https://source.chromium.org/chromium/chromium/src/+/main:components/password_manager/core/browser/import/password_importer.cc;drc=45c4058fd01d05e82e7bc6ced568f028d9b3b104;l=71
and the check for that limit is here:
https://source.chromium.org/chromium/chromium/src/+/main:components/password_manager/core/browser/import/password_importer.cc;l=81
Code shows that it's definitely done on purpose.