Two ways a carrier can restrict this:
Every Pixel ever could create a hotspot. I’ve used the feature on every Pixel I ever had, and on every Nexus I owned before that.
I’ve definitely had this happen on a Pixel before. I was using it in pretty hot weather, and I think I was using it for a video chat.
The phone just shut down, and when it turned on again, it showed a message about overheating protection.
Two ways a carrier can restrict this: