This is my biggest pet peeve. Password policies are largely mired in inaccurate conventional wisdom, even though we have good guidance docs from NIST on this.
Frustrating poor policy configs aside, this max length is a huge red flag, basically they are admitting that they store your password in plan text and aren’t hashing like they should be.
If a company tells you your password has a maximum length, they are untrustable with anything important.