I've never worked at a company that capped the maximum vacation that could be taken at once as a blanket policy. Though time off generally needs to be approved by a manager in advance, and I could imagine challenges getting some managers to approve very long vacations, people have always been able to work it out with advance planning.
I did work one place that mandated you needed to be out of the office for at least 5 consecutive days each calendar year. I'm not sure if it's still required, but there was a banking regulation that mandated it. The rationale was that if you were out of the office for at least a week, it would be harder to commit and easier to discover fraud.