65536 is the maximum number of rows for the Excel 97-2003 file format.
Any .xls files that you open will be limited to that number of rows.
If you have specified that you want to save files in that format by default then when you create a new workbook it will be limited to 65536 rows and [compatibility mode] will appear in Excel's title bar.
To change your default save format: File > Options > Save > Save fils in this format:
Excel Workbook (*.xlsx)
Microsoft Excel MVP, Oxford, England. www.manville.org.uk
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