These challenges are expected because of the security protections in place on FusionAuth Cloud deployments. One option is indeed to self-host FusionAuth, which gives you full control over rate limits and CAPTCHA settings.
Alternatively, you could add your IP address to FusionAuth’s allowlist, which can exempt you from certain rate limits and CAPTCHA checks. Details on this approach and the requirements are documented here:
CAPTCHA and Rate Limits - FusionAuth Cloud