Your course and/or server has a file upload limit. You'll need to increase the limit before you can upload the file. Course settings have a file and uploads section with an upload limit...I think the low end is 10 kb, which is really small. It could be that simple. If it is really a server thing (which the message implies), I cannot advise--I don't do back-end stuff--but it should be somewhere in installation what the upload limit is and you can change it.
SCORM
Scrom file upload issue
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