Is LTSPICE not taking into account power supply limitation while doing AC analysis
Your circuit is a feedback system that sets the voltage at node8 to produce a constant current through the inductor. That is exactly what it is doing. When the inductive reactance rises, the circuit compensates and drives a higher voltage at the top of R1 to maintain node8 voltage as constant as possible.

AC analysis does not take account of power supply limits - if you want power supply limits to be taken into account do a transient response test. AC analysis is a small signal analysis.