Hi Jonathan, 

As you pointed out, it looks like in additional to the limit of 1 million 
total targeting <https://support.google.com/adwords/answer/6372658?hl=en> items 
per campaign, there is also a limit for the number of placement exclusions 
<https://support.google.com/adwords/answer/2454012?hl=en> at the campaign 
level. You may have to make sure that the placement exclusions are below 
both of these limits. Hope this clarifies your question. 

Thanks,
Sreelakshmi, AdWords API Team

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