I've never had a problem using the LIMITS command before, but in recent files when I try to do it, after I set the origin and the limits, I get the message "Cannot set paper space limits when paper margins or background are displayed."
I've never heard of controlling the display of paper margins or background, so I don't have the faintest idea how to control that. Does anyone else?
I've not used LIMITS for a decade or longer, but my first guess is that LIMITS may not be permissible after a page/paper size has been assigned (by PageSetupManager)
I haven't used Limits since sometime in the last century, but you mention that it used to work for you. Do you have a file where you were using limits. If so, can you attach it here?
Where you using paper space limits or were you using model space limits when it was working for you?
There should be no need to set limits manually in a layout. To answer your question about how to do it, go into the options command, display tab and uncheck the appropriate controls: