Yes, archived project count towards your file limit. By archiving a project, you are just cleaning up the project list view on the left-hand side.
Archiving a project still counts towards your file limit, to ensure that you can always resume to an important project. So, no need to worry about being unable to un-archive due to file limits.
Let us know if you have any questions by reaching out to us on chat or emailing us at [email protected]. We're always happy to help!