For unsupported resolutions, one may need to see if there are any software
solutions; maybe the minimum specs of the display are not met by an 8-bit
color specification of the video card in the computer.
Does the display support two kinds of connections, another one, plus VGA?
Could be the display needs some other support for it to work. Drivers?
VRAM? A different control panel and (third-party) software?
The limits may vary due to the VRAM on the card. With enough there, and
with a VGA connection (or supported converter to/from older Mac DB-15)
and the video graphics card with minimal supported specs will show that.
Been several years since I've run any PowerMac, & only used a variety of
Apple CRT color displays with them. Most times, they were very adequate.
A wider array of original choices appeared in the Displays control panel...
So I suspect the lack of video support in the graphics card or VRAM, to be
a player in this resolution limit you see in the control panel. A later CPU/GPU
and better hardware, later Mac OS, offered greater support for newer driver
along with better results.
There may not be a workable upgrade to a different graphic video card for
that old a vintage computer; or if there was one, to locate that now may be
a next-to-impossible mission. Was there any hints in the web site for older
Macs, the LowEndMac site, or others? Some are no longer current sites.
In any event...
Good luck & happy computing! 🙂