I am trying to load a SCORM file that exceeds the 199.9MB limit. The file was provided by a third party and it has been successfully installed before. Is this a Moodle Cloud issue and I will need to move 'regular' Moodle?
It is, unfortunately, a current MoodleCloud limit. You could upgrade to the MoodleCloud medium plan, but that file would likely still take most of your allocated space.
Moving to your own (self-hosted) Moodle, or possibly to Moodle hosting from a Moodle Partner would indeed help solve this problem.
Not knowing what's in that scorm file, it's hard to suggest other things, but sometimes it's possible to host some bigs files (often videos) elsewhere and have the scorm file link to these ressources. I know this breaks the "self-encapsulation" of the scorm package, but it could make it possible to use MoodleCloud for you.
Mat