It will limit its output power, yes, but it can’t limit its input power, which is why you have to limit its input power by ensuring that you don’t exceed the maximum ISC rating as shown in the datasheet/manual.
Overpaneling to about 130% is generally acceptable so long as you exceed neither the maximum input ISC nor the maximum input VOC of the controller, and design the array so that neither of those factors will ever be exceeded under any circumstance.