Question

The quandary we face as humans when we have choices to make but are limited by our own cognitive capacity (information overload).

Answer 1

The quandary we face as humans when we have choices to make but are limited by our own cognitive capacity (information overload) is called bounded rationality.
When individuals make decisions, their rationality is limited by the tractability of the decision problem.
When one has too much information about that (infomation overload) then there is a greater difficulty of understanding an issue and effectively making decisions.