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I am trying to move folders from one location to another within same SharePoint, but i see the below error message. Does that mean I am exceeding threshold of the destination folder.

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I would suggest to move it in different batches if there are any subfolders in that folder.

Other option would be to use free migration tool as Microsoft SharePoint Migration tool. But it doesn't work very well with folders. It rather works good with libraries.

Or as a workaround you can try to open library in the file explorer view and move folder through the file explorer. But be careful as associated metadata might be updated with your name in this case.

Or another option to use paid tool like ShareGate.

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