An Azure internet of things security solution including hardware, operating system, and cloud components.
@James Higgins as we have discussed offline, you confirmed: "I just tried to reproduce it using my test program and the ~1500 byte limitation does not seem to apply anymore."
I am posting this as the answer to inform community that it does not happens anymore after updating to the latest 21.02 release.
Update 16 March 2021
We believe that the patch that we did for cURL CVE-2020-8285 is responsible for the solution. The documentation on this CVE can be found here: https://curl.se/docs/CVE-2020-8285.html. While the CVE describes exploiting the previous design for this component, it is likely that the limited memory environment for Azure Sphere was also triggering this design to behave as reported. The fix to the CVE removes unnecessary recursion and its associated stack usage, providing less opportunity to accidently run out of stack space.
Thanks!