Yes, I don’t think that this is a bug but the system working as intended as @lawnranger explained. The general practice here is to use combinations of other existing places, either in a project or a search URL that lead to the result you want.
Some of the issues surrounding making places that include ocean areas or other large places are documented in other threads here so you can check those out. Examples:
https://forum.inaturalist.org/t/new-limits-to-place-creation/24878
https://forum.inaturalist.org/t/how-to-create-a-new-place-on-inat/3281