I hit it because i use ssh to tunnel connections to mac. And sshd seems to use file socket to handle the sessions. I honest don't think it is a sane limit at 2023. Even the most complained 'low performance' platform like nodejs handles thousands of connections just fine. What it the point to have a limit of 256?
Having a soft-limit of FD_SETSIZE (typically 1024) prevents memory corruption in applications using `select`. The hard-limit is generally huge (>100k) so applications which don't need that protection can simply raise their soft-limit.