It’s a half right sort of thing. Overdose is acutely toxic to the liver. Dosage guidelines are safe unless you’ have impaired liver function (been drinking?), or you’re taking another drug that also has paracetamol (e.g. combo paracetamol/ibuprofen, painkillers for period cramps, etc). I’ve seen opiates compounded with paracetamol and I wouldn’t be surprised if it’s mostly to (try to) limit abuse.

Then again this is in contrast to NSAIDs like ibuprofen that can result in gastric bleeding even at the recommended dose.

I prefer paracetamol/acetaminophen for most uses but I’m pretty careful about how much and what else I’m taking.