Licensing exceptions are raised whenever you try perform an operation that exceeds server licensed limits of one or more edition features.
When you attempt to Create or CreateOrUpdate a user in your eSpace and the maximum number of enabled registered users for this eSpace has been reached, a licensing exception is launched and the operation requested is not performed.
Usually, a licensing exception should be caught at the screen flow level.
Handling Licensing Exceptions
To handle licensing exceptions, simply set your error hander to have the 'Exception' property set to 'Licensing'.
Handle Exceptions | Exception Flow