AFAIK the XPU renderer has no such thing as CPU fallback, it's the same engine on CPU and GPU or it would be unable to use both at the same time and produce a consistent result.
Karma just doesn't support mtlxmix of more than two
surface shaders in a material (as in mtlxStandardSurface inputs).
The manual's Karma XPU page:
Supports blending of two mtlxStandardSurface nodes via mtlxmix.
Mixing inputs to the surface itself is far less complex since it's just weighted averaging of color / vector / float maps or values being fed into a given channel and has no limits except memory related ones. I have a "parametric chrome" map from AMD's open mtlx libs that has 8 or 9 mix nodes chained to varying depths plugged into different inputs of the mtlxStandardSurface and it works fine. On a 4090 and a 32/64 threadripper it's about 95% GPU / 5% CPU. I only start hitting high CPU usage under XPU when the scene overflows from vram somehow or in certain cases where the material uses very intensive mixtures of transmission, SSS, coating, sheen, and has a complicated displacement map where every ray the card's RT cores has to trace is probably maxing out on allowable reflections / refractions, so I'm not sure what's happening in your case. I think trying to mix too many surface shaders might actually spit out an error rather than failing to render the surface texture but I'm not sure.
I'm not even sure if the 2 mixed surface shader limit applies to mtlxdisplacements or not, the manual only mentions surfaces, and displace seems like it would be a simpler blend operation.