1min Interval Cronjobs inside CloudLinux
CageFS documentation mentioning that the "user should not feel any way restricted" refers to file system and process isolation. A chroot or container. Users are not restricted in the applications and config files they install, but this does not imply anything about resource quotas.
Possibly the cron limitation is imposed by your host regardless of available capacity or your process quota. Easier to write a naïve crontab parser than doing good performance root cause analysis and capacity planning.
Read those terms of service, although almost certainly as administrators of the container host they are allowed to do this. They have a point that frequent cron jobs can be a significant load, especially in resource constrained environments. Although I wonder how enormous their oversubscription ratio is that even with a meagre quota of 100 processes they still feel the need to manage crontabs.
To make a distinction, you rented a container from a shared hosting provider, who uses CloudLinux Shared. Dedicated server use cases for CloudLinux exist, same as upstream RHEL or CL's own clone AlmaLinux.