A problem of J. E. Littlewood
Here is my take: There are $4$ degrees of freedom in selecting the center line of each cylinder, for a total of $4n$ degrees of freedom. Subtract from this the $6$ degrees of freedom given by the Euclidean motions (rotations and translations in space), as applied to the total configuration – for a total of $4n-6$ degrees of freedom.
For two cylinders to touch, the minimal distance between points on their respective center lines must be $2$. This results in $\binom{n}{2}$ equations. To be able to satisfy all these equations, we must probably have $4n-6\ge\binom{n}{2}$, which holds for $n\le7$.