Hi.
There would be a sort of limitation, and that’s mostly going to be imposed by the bandwidth and CPU usage required to encode/decode everyone’s streams.
You can see my explanation of how Audio/Video works here :
But basically, with 7 players, you have about 42 connections between all of you, and they are direct connections, so it’s not going through the Forge (unless in rare situations where connectivity is impossible).
Add to that, the fact that core has some bugs related to how A/V works that could cause the issues you’ve described and we’ve been unable to figure out how to fix them as it depends on a library used.
One suggestion would be to try installed and enabling the jitsirtc module, which would make it use the Jitsi servers for Audio/Video which works differently and would improve quality, especially for large groups as it has a lesser cpu/bandwidth requirement.
I know that many people have reported that the module makes it more stable but others have reported latency issues, especially if they are further away from the jitsi servers.
I hope that helps.