You’re right The official FLAC page lists 655.35 kHz as limit, but with --lax, I was able to create a 768/32 FLAC file:
Without it, it says:
x.wav: ERROR initializing encoder
init_status = FLAC__STREAM_ENCODER_INIT_STATUS_NOT_STREAMABLEThe encoding parameters specified do not conform to the FLAC Subset and may not
be streamable or playable in hardware devices. If you really understand the
consequences, you can add --lax to the command-line options to encode with
these parameters anyway. See FLAC - Format
They probably don’t want to sell non-conformant FLACs.
There are 20 bits dedicated to sample rate, so 1048575 Hz, which is exactly 2^20-1, seems to be a hard limit. We’re about to blow past that: