I am not able to archive space, I get a notification with User limitation:
However, I can't see how this is related and we are currently below this limitation anyhow.
Can someone help, please?
It's not going to let you modify anything until the license is met. Confluence goes into Read-only mode when the license is exceeded. If you are actually below the license limit, then you should open a support request with Atlassian as this could be a bug. However, I would double check your license usage first.
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