This is most likely a serverside issue, there is the configuration option FileSettings.MaxFileSize in your server’s config.json which needs to be checked and if you have a reverse proxy (nginx f.ex.) in front of your server, you also need to check if it limits the amount of data allowed to be uploaded. In nginx the configuration value is called client_max_body_size and the default value in the Mattermost examples is 50MB I think.
Thanks @agriesser
I was having issues with this at first but found the correct location in our nginx server for our mattermost configuration. works now