The message is perhaps a bit misleading. The file size limit is not based on the size of the KML file, but the resulting size of that KML file in the map. The KML file is basically imported into a native format in JSON, and the result is that it's over 10mb in size. This is what I suspect. If you can make the KML file smaller, perhaps split it in two somehow, you might be able to load it.
In any case, with this much data you're trying to add, you're likely to see performance drop when viewing the map. You're approaching the limit of the browser to draw the features.
If you can share the URL to the KML, we can test it out for sure.
Thanks,
Mike