EXT4 supports, like... I don't know exactly. Billions probably. I've managed NAS boxes with multiple millions of files on them, using EXT4 on mdadm SoftRAID.
4 billions by filesystem design, but the actual figure is specified during setup (as mentioned by
@VirtualLarry).
Synology sets very conservative limits. This could be performance-driven, but also just based on licensing/product placement. You want to keep more files, you pay more.
So I would suspect that Synology is probably making the recommendation for performance reasons. Anything close to 100k files in a single directory would make typical interactions frustratingly slow, even on a system significantly more powerful than a low-end NAS appliance.
100k is for all files, not per directory.
My recommendation would be to store the files in a directory tree with <1k files per directory. If you're using the NAS as a backend for, say, software development (usually the worst culprit when it comes to a bajillion tiny files) you should be fine, since the biggest projects are usually already organized that way.
Keeping a balanced tree definitely helps performance. Not just in file systems.
Yes, NAS is supposed to be a development backend + download station + general home use.
Git produces a lot of files, but maybe they aren't kept on the main file system (but in some archive / container)? This is one of the questions I'll have to ask Synology.
Also... how do you define "general use?" Because 100k files is kind of a lot. (I have about that many on my NAS, and that's the result of like 20 years of pack-ratting.)
Photos: 20k - just final JPEGs (ideally: 20k*3 since there are also RAW and xmp files...). And growing.
Documents and projects (excluding Git archive and data): 10k
Articles, instructions, manuals, ebooks etc: 5k+
So already at launch I'm using half of the limit for personal/hobby stuff.
Git archive: no idea.
Project data: honestly... tens of millions (I'm doing ML, image recognition...). But this part isn't mandatory. I run everything on the workstation anyway.