The warning refers to a free outflow on the top of the model. You have set the behavior of the model in case of head above the model top to 'constrained'. That means that all water exceeding the top is taken from the model via an (internal) Dirichlet boundary. That boundary has to be turned on in locations where the head exceeds the top only, which is done in an iterative way. If after 30 iterations the correct locations of the boundary conditions are not found, which is typically the case if the water level exceeds the top in large areas, the iteration is stopped and the last locations are used.