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The phrase "a limited capacity" is correct and usable in written English.
It can be used to describe a situation where there is a restriction or constraint on the amount of something that can be handled or accommodated.
Example: "The venue has a limited capacity, so we recommend purchasing tickets in advance to ensure your spot."
Alternatives: "a restricted capacity" or "a constrained capacity".
Exact(60)
Agencies have limited budgets and therefore a limited capacity to take on these major efforts.
Conventional oil production has a limited capacity.
People have a limited capacity for parental doting.
The mechanism, however, has a limited capacity for crystal growth.
Articular cartilage has a limited capacity for self-repair.
Cartilage has a limited capacity for self repair after injury.
Cartilage has a limited capacity for self-repair.
EXTRA POINTS Linebacker Carlos Emmons returned to practice in a limited capacity Monday.
As is the notion that humans have a limited capacity set by a genetic code.
You probably use voice recognition technology already, if in a limited capacity.
The server has a limited capacity and would fill up quickly with video content.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com