I am a physicist.
It is perfectly possible to formulate theories of physics in higher spatial dimensions. In fact, many high-energy theories like string theory require many spatial dimensions for mathematical consistency. It is something we actively look for signatures of in experiments.
What we have found is that our observations are incompatible with 'extended' additional dimensions. Extended here means that you can go a sizeable distance. It's not that the other dimensions would just stop, but they'd be more like Pac Man---these dimensions might have periodic boundary conditions, making them circles. If the circle's radius (or circumference, equivalently) becomes very large, such a 'compactified' dimension starts to have a lot of space in it, much like the familiar 3 dimensions. So, we can put an upper bound.
My most recent recollection. We may yet have missed dimensions as large as 1mm in [diameter, circumference, I forget]. The most sensitive probes with the fewest assumptions about the structure + particle content of the universe tend to be gravitational, and gravity is very hard to measure precisely on very short length scales.
edit to add: the latest summary of extra dimensional searches from the Particle Data Group http://pdg.lbl.gov/2019/listings/rpp2019-list-extra-dimensio...
even better, here's the PDG's review, rather than their technical summary: http://pdg.lbl.gov/2019/reviews/rpp2018-rev-extra-dimensions...