The max loop warning catches infinite loops that would otherwise crash Unity. Sometimes you want to loop between states many times in one frame (e.g., to create a bunch of objects), but most of the time if you're looping through states more than 1000 times in a frame it's because you accidentally created an infinite loop!
One way to fix an infinite loop is to use a Next Frame Event. This lets you stay in a state for one frame and then go to another state in the next frame.