Wanted to check if Xtraction had a hard limit for adding additional users and wouldn't let us get out of compliance if we already hit the upper limit, Is that true?
Xtraction uses floating licenses on a first come first serve basis. If your site purchased 20 licenses that's the hard limit of users who can log in. The 21st user will receive an error saying all licenses are used up.
Keep in mind, if an admin is not already logged in and the license is hit then they have no way of booting people out.