@MayankBargali-MSFT no need and seems like I figured it out. Looks like I have to override value for
ServiceProviders.MaximumAllowedTriggerStateSizeInKB
in app settings but not
Microsoft.Azure.Workflows.ServiceProviders.MaximumAllowedTriggerStateSizeInKB
as you've suggested. Overriding in host.json took no effect, but ServiceProviders.MaximumAllowedTriggerStateSizeInKB looks promising and not getting errors now.
Furthermore an error was about 10240 limit so it's 10KB. Where the default limit for Microsoft.Azure.Workflows.ServiceProviders.MaximumAllowedTriggerStateSizeInKB is 1KB and limit for ServiceProviders.MaximumAllowedTriggerStateSizeInKB is 10KB