I hit this issue while publishing a list workflow on our SharePoint 2010 website. It didn't give much of an error so I had no clue what was happening. Apparently I wasn't the first person to experience this annoying SPD limitation. There is an MS KB dedicated to this error but there isn't much of a solution to this.
Only practical workaround if you author workflows with large number of steps is to split them in to multiple workflows.
Only practical workaround if you author workflows with large number of steps is to split them in to multiple workflows.
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