What kind of file was it? Are you able to upload other files to that site?
Sometimes there are browser issues during the upload process that cause temporary issues. Please try uploading your file again, in a new browser session.
More specifically, I believe the upload_size app.yml setting is given to nginx as client_max_body_size, which is the same parameter provided in the two site settings descriptions:
Max image size KB
The maximum image upload size. This must be configured in nginx (client_max_body_size) / apache or proxy as well. Images larger than this and smaller than client_max_body_size will be resized to fit on upload.
Max attachment size KB
The maximum attachment files upload size. This must be configured in nginx (client_max_body_size) / apache or proxy as well.
Unless something has changed, what this change to the yml does is change what the maximum size that Discourse allows is. That is, the max size available in the ux is 10mb. This lets you increase that maximum by changing some stuff in the nginx config files.
I think while the user input allows using MB too, the value is always saved in KB.
To me, setting names aren’t information for the user but more of a technical term to identify the setting. They aren’t translatable, so admins using Discourse in a different language won’t necessarily understand them at all. And configuring Discourse should work for them too. So the description needs to be good enough on its own.
Maybe English-speaking users should use that perspective too and ignore the setting name, focusing more on the description. Then you wouldn’t be confused by the name.
But you might, say, have a multisite instance and some sites want less than the theoretical maximum. That’s at least part of why there are two settings.