I also experienced this message for the first time last night. Rebooting my laptop fixed it.
Although to be honest my first guess of the cause was as you suspected a login server error or ISP latency but disconnecting from internet and reconnecting did not change it and at both times when it continued erroring out and when it went through immediately after rebooting the blue server population was listed at just over 1300. Other EMU servers also seemed to have higher numbers.
Bottleneck logging in when population is high?
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