diff --git a/changelog/fix_no_exclude_limit_max.md b/changelog/fix_no_exclude_limit_max.md
new file mode 100644
index 000000000000..d68cf197aa54
--- /dev/null
+++ b/changelog/fix_no_exclude_limit_max.md
@@ -0,0 +1 @@
+* [#12888](https://github.com/rubocop/rubocop/issues/12888): Fix `--no-exclude-limit` generating a todo with `Max` config instead of listing everything out with `Exclude`. ([@earlopain][])
diff --git a/lib/rubocop/formatter/disabled_config_formatter.rb b/lib/rubocop/formatter/disabled_config_formatter.rb
index 90056e00c1ad..2ad83b23719a 100644
--- a/lib/rubocop/formatter/disabled_config_formatter.rb
+++ b/lib/rubocop/formatter/disabled_config_formatter.rb
@@ -116,20 +116,24 @@ def output_cop(cop_name, offense_count)
       def set_max(cfg, cop_name)
         return unless cfg[:exclude_limit]
 
-        max_set_in_user_config =
-          @config_for_pwd.for_cop(cop_name)['Max'] != default_config(cop_name)['Max']
-        if !max_set_in_user_config &&
-           # In case auto_gen_only_exclude is set, only modify the maximum if the files are not
-           # excluded one by one.
-           (!@options[:auto_gen_only_exclude] ||
-            @files_with_offenses[cop_name].size > @exclude_limit)
-          cfg.merge!(cfg[:exclude_limit])
-        end
+        cfg.merge!(cfg[:exclude_limit]) if should_set_max?(cop_name)
 
         # Remove already used exclude_limit.
         cfg.reject! { |key| key == :exclude_limit }
       end
 
+      def should_set_max?(cop_name)
+        max_set_in_user_config =
+          @config_for_pwd.for_cop(cop_name)['Max'] != default_config(cop_name)['Max']
+
+        max_allowed = !max_set_in_user_config && !no_exclude_limit?
+        return false unless max_allowed
+
+        # In case auto_gen_only_exclude is set, only modify the maximum if the files are not
+        # excluded one by one.
+        !@options[:auto_gen_only_exclude] || @files_with_offenses[cop_name].size > @exclude_limit
+      end
+
       def output_cop_comments(output_buffer, cfg, cop_name, offense_count)
         output_buffer.puts "# Offense count: #{offense_count}" if show_offense_counts?
 
diff --git a/spec/rubocop/cli/auto_gen_config_spec.rb b/spec/rubocop/cli/auto_gen_config_spec.rb
index e9e96c55cf5a..67658e7d7c3e 100644
--- a/spec/rubocop/cli/auto_gen_config_spec.rb
+++ b/spec/rubocop/cli/auto_gen_config_spec.rb
@@ -1354,33 +1354,68 @@ def function(arg1, arg2, arg3, arg4, arg5, arg6, arg7)
     end
 
     describe 'when --no-exclude-limit is given' do
-      before do
-        offending_files_count.times do |i|
-          create_file("example#{i}.rb", [' '])
-        end
-      end
-
       let(:offending_files_count) do
         RuboCop::Options::DEFAULT_MAXIMUM_EXCLUSION_ITEMS + 1
       end
 
-      it 'always prefers Exclude to Enabled' do
-        expect(cli.run(['--auto-gen-config', '--no-exclude-limit'])).to eq(0)
-        lines = File.readlines('.rubocop_todo.yml')
-        expect(lines[1]).to eq("# `rubocop --auto-gen-config --no-exclude-limit`\n")
-        expect(lines[9..12].join).to eq(
-          <<~YAML
-            # This cop supports safe autocorrection (--autocorrect).
-            # Configuration parameters: AllowInHeredoc.
-            Layout/TrailingWhitespace:
-              Exclude:
+      context 'for a cop without Max configuration' do
+        before do
+          offending_files_count.times do |i|
+            create_file("example#{i}.rb", [' '])
+          end
+        end
+
+        it 'always prefers Exclude to Enabled' do
+          expect(cli.run(['--auto-gen-config', '--no-exclude-limit'])).to eq(0)
+          lines = File.readlines('.rubocop_todo.yml')
+          expect(lines[1]).to eq("# `rubocop --auto-gen-config --no-exclude-limit`\n")
+          expect(lines[9..12].join).to eq(
+            <<~YAML
+              # This cop supports safe autocorrection (--autocorrect).
+              # Configuration parameters: AllowInHeredoc.
+              Layout/TrailingWhitespace:
+                Exclude:
+            YAML
+          )
+          expect(lines[13..]).to eq(
+            Array.new(offending_files_count) do |i|
+              "    - 'example#{i}.rb'\n"
+            end.sort
+          )
+        end
+      end
+
+      context 'for a cop with Max config' do
+        before do
+          create_file('.rubocop.yml', <<~YAML)
+            AllCops:
+              DisabledByDefault: true
+            Metrics/ClassLength:
+              Enabled: true
           YAML
-        )
-        expect(lines[13..]).to eq(
-          Array.new(offending_files_count) do |i|
-            "    - 'example#{i}.rb'\n"
-          end.sort
-        )
+          offending_files_count.times do |i|
+            max_lines = RuboCop::ConfigLoader.default_configuration['Metrics/ClassLength']['Max']
+            create_file("example#{i}.rb", ['class Foo', *Array.new(max_lines + 1, '  bar'), 'end'])
+          end
+        end
+
+        it 'always prefers Exclude to Enabled' do
+          expect(cli.run(['--auto-gen-config', '--auto-gen-only-exclude',
+                          '--no-exclude-limit'])).to eq(0)
+          lines = File.readlines('.rubocop_todo.yml')
+          expect(lines[9..11].join).to eq(
+            <<~YAML
+              # Configuration parameters: CountComments, Max, CountAsOne.
+              Metrics/ClassLength:
+                Exclude:
+            YAML
+          )
+          expect(lines[12..]).to eq(
+            Array.new(offending_files_count) do |i|
+              "    - 'example#{i}.rb'\n"
+            end.sort
+          )
+        end
       end
     end