It depends on the situation? I believe both motors can regen (from memory), although I'd have to go drive a bit and look at ScanMyTesla to be 100% sure. Clearly if the wheels slip on ice the regen adjusts itself, I would think it would use the other motor if necessary to try to keep the same braking force if possible. The AWD model 3 is normally rear-biased however, even in acceleration. The front motor is only used on harder accelerations. I *think* that the different motor designs influence this. The rear motor cannot spin freely I think so might as well always use it to power or regen.
The regen is at least limited by the battery temperature as that affects how much power it can safely take without hurting it. So yes, there's a limit in the ability of the battery to take energy. Tire grip is a factor in maximum usable regen as you don't want to lock the wheels. I think there's also an arbitrary limit set so it's not too hard to drive one-pedal. Even if the battery could take 150kW, I don't think we'd like to drive a car that's setup that way... In theory they could augment regen when we press the brake pedal but that's difficult to modulate so the brake feel is consistent. Probably preferable for feeling and security to make the brake pedal only brake using dependable friction.