CircleCI Cloud and CircleCI Server do not use the same config size cap.
CircleCI Cloud
6 MB source config
8 MB compiled config, after orbs, anchors, and aliases expand
Over the cap, the pipeline reports Your source config is too large to be processed or Your compiled config is too large to be processed.
Some Cloud organizations have a higher compiled cap. That exception does not apply to a Server install.
CircleCI Server (current builds)
Current Server does not enforce the Cloud 6 MB / 8 MB caps.
The YAML parser still has a hard 50 MB code-point ceiling. That is the effective limit on current Server.
No configuration was found in your project is a different failure. It means CircleCI did not find a config to compile. It is not the size-limit error.
Older Server 4.8 installs
Server 4.8.12 still enforced 8 MB source and 12 MB compiled (in that line since 4.8.6). A source file a little over 1 MB is under that older cap. Upgrading to a build that removed the application cap is what drops the 8 MB / 12 MB check. The 50 MB parser ceiling remains.
Do not apply a Cloud changelog’s 8 MB compiled figure to Server. On 4.8 that compiled cap is 12 MB. On current Server there is no application compiled cap short of 50 MB.