The editors cannot demand more papers to be reviewed than there are on this topic. See also the reply by Anders Buen in https://www.researchgate.net/post/What_are_the_lower_and_upper_limits_about_the_number_of_references_in_Review_Articles_Is_there_any_protocol_for_that.
This is a challenge if one is pioneering in a research area where little has been written. If a referee demands a larger literature review, one approach might be to broaden that review beyond the area of focus.
In general, a review article includes an average of 100 to 150 refs. Some of them use more than this number. However, the most important thing in writing a rev. article is how to put ideas together and how to conclude from those ideas that if some one reads it, he will say : this is really a good reference for I understood many good points from it. Good luck.