There are two ways to spend a small budget, and only one of them is honest. You can hold the frame size and drop the bitrate until the picture turns to blocks, or you can lower the resolution so the bitrate you can afford is enough for the pixels that remain. This tool does the second: a minute of 1080p aimed at 10 MB comes back as 720p, four minutes comes back smaller again, and the result says the exact pixel size. A smaller sharp picture beats a large smeared one on every screen it will be watched on. Past a few minutes even that runs out, and then the tool says so rather than pretending.
Compression is not free, and any tool that says otherwise is selling something. Re encoding at a lower bitrate loses detail, most visibly in fast motion, fine grain and busy backgrounds. A talking head at 10 MB per minute looks close to the original. A handheld shot of leaves in wind at the same budget will show blocking.
That is why the tool has a floor. If hitting your target would mean dropping under a bitrate where the picture stops being watchable, it stops and says so rather than producing a file you would not want to send. When that happens the honest options are the ones it suggests: trim the clip shorter, or accept a larger limit.