I also got same problem.
I created this ticket.
@rbostan @prasiddha check out my link I made a grid that works! on ticket 8084
@rbostan, thank you for your report.
We've created internal ticket(s) MAGETWO-80577 to track progress on the issue.
@magento-engcom-team thanks for creating internal tickets on this.
Issue is still relevant in 2.2.2.
I tried changing append() to;
    /**
     * Append
     *
     * @param string $content
     * @return void
     */
    public function append($content)
    {
        $document = new \DOMDocument(static::XML_VERSION, static::XML_ENCODING);
        $document->loadXML($content, LIBXML_PARSEHUGE);
        $this->document->importNode($document->documentElement, true);
        $this->templateNode = $this->document->documentElement;
    }
And making document a protected field and adding the document in__construct to it. But to no avail. But I think a solution might be somewhere in this direction, where we don't use append() to append stuff but combine the XML in a different way.
The content it tries to append looks like this;
<script type="text/x-magento-init"><![CDATA[{"*": {"Magento_Ui/js/core/app":  .... etc etc ....}]]></script>
Maybe we can use an AJAX request to pull in that data from a controller, so it doesn't have to be included in the XML payload.
Did some further digging.
This UI component is the part that gets added to the main content XML, causing it to break; vendor/magento/module-configurable-product/view/adminhtml/ui_component/product_form.xml
This UI component exists of the block Magento\ConfigurableProduct\Block\Adminhtml\Product\Edit\Tab\Variations\Config\Matrix with the template vendor/magento/module-configurable-product/view/adminhtml/templates/catalog/product/edit/super/wizard.phtml.
wizard.phtml contains these two function calls;
$productMatrix = $block->getProductMatrix();
$attributes = $block->getProductAttributes();
This is where all variations are written down, so this is the bulk of the data that makes the CDATA too big.
I would like a way to offload loading this data by getting it from an AJAX request. This way, the data does not need to be inserted in the DOM through an XML blob. We could create the AJAX call directly in wizard.phtml (not very clean) or alternatively, find the JS file where the data is actually used and fetch it there. From what I've found, it is either one (or both) of these two JS files;
vendor/magento/module-configurable-product/view/adminhtml/web/js/variations/product-grid.js
vendor/magento/module-configurable-product/view/adminhtml/web/js/variations/variations.js
I don't have any time now to pursue this further. Might pick this up later.
Apparently, I completely overlooked this workaround; https://github.com/magento/magento2/issues/8084#issuecomment-335239220
This works, although of course it is still terribly slow.
We've open sourced our solution for using configurable products with an extremely large amount of associated simple products; https://github.com/elgentos/LargeConfigProducts, which has a workaround for this issue.
@peterjaap installed your module on Magento 2.2.3. Backend works fine now (whoopee) however, froontend gives following JS error in console:
SyntaxError: JSON.parse: expected ',' or '}' after property value in object at line 5 column 35 of the JSON data
Product image and options don't load (continuous loader gif).
Any thoughts ? 
@attiquer could you open an issue here ?
I am still having the same issue in magento 2.2.5 - will this be fixed in the core soon? any updates?
@peterjaap I will try to install your workaround for the time... thank you!
Still have this issue with Magento 2.3
same here...
Unfortunately it seems this is not a priority for Magento
Another thought is to leave out the Product Configuration matrix altogether so this huge JSON blob isn't needed. We'd probably need to modify the controller that handles the post data and the validator as well to make sure the connection with the simple products isn't removed after saving when we remove the matrix.
Still have this issue with Magento 2.3
@rydemods Yes, It is in Magento 2.3 too and exist in Magneto 2.3.2 too. Have you get any solution ?
can confirm - 2.3.2 still having the problem
It is having in Magento 2.3.2 on System -> Data Transfer -> Export page. Unable to export the product.

Check screen shot..
@magento-engcom-team Please create an instance for me, I have resolved above issue on local machine.
@magento-engcom-team  @magento give me test instance
@amitebizon
It is having in Magento 2.3.2 on System -> Data Transfer -> Export page. Unable to export the product.
New Issue created: https://github.com/magento/magento2/issues/24311
I have resolved this on my Magento instance.
This is the pull request #24314
Commit: 94e3994
Hi @engcom-Alfa. Thank you for working on this issue.
Looks like this issue is already verified and confirmed. But if you want to validate it one more time, please, go though the following instruction:
Component: XXXXX label(s) to the ticket, indicating the components it may be related to.[ ] 2. Verify that the issue is reproducible on 2.4-develop branchDetails
- Add the comment @magento give me 2.4-develop instance to deploy test instance on Magento infrastructure. 
 - If the issue is reproducible on 2.4-develop branch, please, add the label Reproduced on 2.4.x.
- If the issue is not reproducible, add your comment that issue is not reproducible and close the issue and _stop verification process here_!
[ ] 3. If the issue is not relevant or is not reproducible any more, feel free to close it.
Reproduced on the fresh 2.4-develop instance.
Manual testing scenario:
1.Create a configurable product with ~5000 sub-products;
Actual Result:

:white_check_mark: Confirmed by @engcom-Alfa
 Thank you for verifying the issue. Based on the provided information internal tickets MC-30050 were created
Issue Available: @engcom-Alfa, _You will be automatically unassigned. Contributors/Maintainers can claim this issue to continue. To reclaim and continue work, reassign the ticket to yourself._
Hi @rbostan.
Thank you for your report and collaboration!
The issue was fixed by Magento team. The fix was delivered into magento/magento2:2.3-develop branch(es).
Related commit(s):
The fix will be available with the upcoming 2.3.5 release.
Hi @rbostan.
Thank you for your report and collaboration!
The issue was fixed by Magento team. The fix was delivered into magento/magento2:2.4-develop branch(es).
Related commit(s):
The fix will be available with the upcoming 2.4.0 release.
you should upgrade to latest version
On Wed, 13 May 2020 at 03:21, WilsonTeles notifications@github.com wrote:
I'm also having this problem in version 2.2.10 but in the customer grid. I
have about 70k customers registers and got the "CData section too big". I
have implemented the solution for
magento\framework\view\templateengine\xhtml\template class, overriding
append method but the page locks on spinning and the browser page stops.—
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