We have one user getting this error in a Remote Desktop environment, however the error message is for other users on the server. None of them are actually exceeding their limit, but for some reason it is trying to connect her user as one of them. If she chooses activate with a different ID it works, but the error comes back after she logs out and the next time she launches Acrobat
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It seems that every time the user tries to launch Adobe apps, it tries to create a fresh connection with the server and in that attempt, the machine is being considered as a new machine. However, as you have mentioned when the user chose to sign in with different email the error message goes away. This means the automatic connections made by that machine are blocked and manual connections are working.
To resolve this kindly check if the following settings are set as shown in the screenshot below:
Let us know if this helps.