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The 5,000-item limit in SharePoint is known as the List View Threshold. It does not mean that a SharePoint list can store only 5,000 items; SharePoint Online supports up to 30 million items per list or library.
To work with large lists, we can create indexed columns and use filtered views to retrieve only the required records. For example, we can index a Status or Created Date column and use it to filter the list so that the query stays within the threshold.
If we need to retrieve a large number of records through Power Automate, we can also enable pagination in the Get items action and configure an appropriate threshold.
Important: Pagination helps retrieve records in batches, but it does not bypass the List View Threshold for every query. In SharePoint Online, the threshold cannot be increased manually, so optimizing filters and views is the recommended approach.
Microsoft-Documentation for you reference - https://support.microsoft.com/en-us/sharepoint/lists/data-and-lists/list-view-threshold-for-large-lists-and-libraries