Hello, and welcome to the forum.
The special edition licence for Code Warrior has this limit for C++ code. To extend beyond this limit you will need to purchase a suitable licence.
However, the licence that you have will handle up to 32K of compiled C code, for MC9S08 MCUs. You will need to specify that you are using C when creating a project using the new project wizard.
The version number that you refer is that for the IDE program, and not the compiler, etc.
Regards,
Mac