not even an answer
by brute-forcing a few ideas it looks like there are more hidden variables than previously thought. it is probably safe to say that the upper limit is a result of "running out of memory" especially when calculation time does not play any role. the thing is that there are factors even outside of LAMBDA
that affect the computational capabilities of the formula. here is a brief summary of the issue in layman's terms:
WHY WERE/ARE LAMBDA'S MINIONS STUPID?!
UPDATE: limit boundaries were moved 10-fold higher, so none of the below testing formulae limits represent the actual up-to-date state, however, lambda minions are still not limitless!
let's imagine a memory buffer from the 1999 era with a limited size of 30 units that kicks in only when you use LAMBDA
with friends (MAP
, SCAN
,BYCOL
, BYROW
, REDUCE
, MAKEARRAY
). keep in mind that in google sheets when we use any other formula, the limiting factor is usually the cell count limit.

example 1
output capability: 199995 cells!
reduction from 199995: 1/1 (meh, but ok)

example 2
output capability: 49998 cells!
reduction from 199995: 1/~4 (*double-checking the calendar if the year is really 2022*)

example 3
output capability: 995 cells!
reduction from 199995: 1/201 !! (*remembering this company built a quantum computer*)

further testing
establishing the baseline:
all below formulae are maxed out so they work as "one step before erroring out". please keep noticing the numbers as a direct representation of row (not cell) processing abilities
starting with a simple:
=ROWS(BYROW(SEQUENCE(99994), LAMBDA(x, AVERAGE(x))))
by adding one more x
the following would error out so even the length of strings matters:
=ROWS(BYROW(SEQUENCE(99994), LAMBDA(xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx, AVERAGE(xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx))))
doubling the array brings no issues:
=ROWS(BYROW({SEQUENCE(99994), SEQUENCE(99994)}, LAMBDA(x, AVERAGE(x))))
but additional "stuff" will reduce the output by 1:
=ROWS(BYROW({SEQUENCE(99993), SEQUENCE(99993, 1, 5)}, LAMBDA(x, AVERAGE(x))))
interestingly this one runs with no problem so now even the complexity of input matters (?):
=ROWS(BYROW(SEQUENCE(99994, 6, 0, 5), LAMBDA(x, AVERAGE(x))))
and with this one, it seems that even choice of formula selection matters:
=ROWS(BYROW(RANDARRAY(99996, 2), LAMBDA(x, AVERAGE(x))))
but what if we move from virtual input to real input... A1 cell being set to =RANDARRAY(105000, 3)
we can have:
=ROWS(BYROW(A1:B99997, LAMBDA(x, AVERAGE(x))))
again, it's not a matter of cells because even with 8 columns we can get the same:
=ROWS(BYROW(A1:H99997, LAMBDA(x, AVERAGE(x))))
not bad, however, indirecting the range will put us back to 99995:
=ROWS(BYROW(INDIRECT("A1:B"&99995), LAMBDA(x, AVERAGE(x))))
another fact is that LAMBDA
as a standalone function runs flawlessly even with an array 105000×8
(that's solid 840K cells)
=LAMBDA(x, AVERAGE(x))(A1:H105000)
so is this really the memory issue of LAMBDA
(?) or the factors that determine the memory used in LAMBDA
are limits of unknown origin bestowed upon LAMBDA
by individual incapabilities of:
MAP
SCAN
BYCOL
BYROW
REDUCE
MAKEARRAY
and their unoptimized memory demands shaken by wast variety of yet unknown variables within our spacetime