@Dhruv.Parekh Thanks for reaching out. The Azure Container Apps environment reserves a certain number of IP addresses (up to 256) for its infrastructure within your VNet. This does not limit the number of replicas of your apps.
Each new replica of an app gets a new IP address. The total number of replicas you can have is not directly limited to 256. It depends on the size of your subnet and the number of IP addresses available for your apps. The maximum number of replicas per revision in a container app is configurable up to 1,000 please refer:https://video2.skills-academy.com/en-us/azure/container-apps/scale-app?pivots=azure-cli
Therefore, it is possible to have more than 250 container apps running in a single Azure Container App Environment, provided there are enough IP addresses available in your subnet and other resources to support them.
do let me know incase of further queries, I would be happy to assist you.