Also, once you do reduce the number of blocked contacts, since you have exceeded the number, I have a strong suspicion you are blocking spam calls. Would that be a good guess? Blocking spam numbers is a total waste of time and energy, because the number you block isn't the number that actually called you. Spam callers do what is called Spoofing their number. You won't reduce the number of spam callers in any way by attempting to block a spoofed spam number.
The only real use to block a number is from a contact or real person you don't want to be able to call you or leave a message. Those are real numbers.
Instead you should be using the Call Screening tools Apple provided with iOS 26. See this --> Screen and block calls on iPhone - Apple Support and use the Ask Reason for Calling, which will virtually eliminate spam calls.