I wouldn't call that a caveat so much as SOP for Microsoft licensing. A Windows license does not entitle you to run unlimited Windows VMs on top unless you pay for the more expensive edition.
The "hack" of buying a small number of super beefy servers to save on licensing costs was plugged looooong ago.
The "hack" of buying a small number of super beefy servers to save on licensing costs was plugged looooong ago.