I've tried to work with Cisco support for the past two months now, trying to get a decent solution, but to no avail.
They claim that this is a documentation error and that the device will never support more than 8 LAGs. Their solution is to arrange for a refund, but nothing else, stating that an exchange for a device that does support 32 LAGs is only possible if the price difference is less than $100. This last answer (the $100 price bracket) came only after nagging support for almost 2 months.
Needless to say I'm pretty disgruntled. However, I decided to live with this limitation and leave it at that. At roughly $1400 per switch, there's nothing else that does 10Gbase-T and supports MLAGs either in a stack or in a chassis. There are quite a few small 10Gbase-T switches, but none with those specific features.
Your switches are a different beast altogether though.
Should you decide to get a refund for these switches; there are quite a few alternatives at your pricepoint (roughly $12000 for two switches).
If it has to be Cisco, support has verified that the SG550XG does in fact support 32 LAGs.
But, you might want to consider something like an HP 5406R (one chassis, filled with redundant management, power and interface blades), HP 5700, Juniper EX4600 (if DAC cables are okay for you instead of 10Gbase-T), Dell N4032, all of which are way more capable than an SG350XG functionality wise, but have similar price points.
For reference; my support case number is 680229094. In case you get a better answer, please drop me a note!
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