The Toronto area alone has over 500000 observations, so you’re running into the limit on creating places with too many observations.
There is supposed to be an error message, but it doesn’t seem to reliably show up, so I’ve moved your post to this existing bug report (and changed the title a bit to clarify the issue).
(See https://forum.inaturalist.org/t/new-place-error-geometry-has-too-many-observations/32020 for an example of the error message correctly showing up.)