My Note9 is able to register at least 10 separate touches in Chwazi app (just tested). Seems weird a newer phone in the basically same line would downgrade to three.
Quite fun game!
You have data scientists busy analyzing telemetry all the time. It's conceivable someone figured "the data shows" most people don't even use 3 fingers at a time, much less 5+, so why not simplify the screen driver / hardware to save costs (or trade it for some improvement elsewhere)...
Newer phones are more optimized than older ones. On the market, optimized doesn't mean better.