R5 states the following: “VEX Y-Cables are allowed, however a maximum of (1) Y-Cable can be used per Motor Port of the Microcontroller or Power Expander.”
A literal reading of R5 would lead me to say that a team can have 8 Y-cables on the microcontroller because there are 8 motor ports. Is this correct, or are we limited to 1 Y-cable for the microcontroller and 1 Y-cable for the power expander (when it’s introduced)?
Your initial reading is correct. You may use up to 1 Y-Cable per motor port of the VEX Microcontroller.
This rule is designed to prevent a team from overloading the connector on a single motor port (for instance by using Y-cables with Y-cables one could drive all 10 motors off a single port and possibly damage that port).
This means you can use up to (8) Y-cables, however all other VRC rules still apply (including the limit on the maximum number of motors allowed).