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You don't need all the permutations. If there are 32 bytes in a cache line then each instruction can only start at one of 32 possible positions. Then if you want to decode N instructions per cycle you need N 32-to-1 muxes. You can reduce the number of inputs to the later muxes since instructions can't be zero size.

It was even simpler until very recently where the decode stage would only look at a max 16 byte floating window.

Yes, but you're not describing it from the right position. Is instruction decode hard? Yes, if you think about it in isolation (also, fwiw, it's not a permutation problem as you suggest). But the core has a bunch of other stuff it needs to do that is far harder. Even your lowliest Pentium from 2000 can do instruction decode.

It's a lot for a decoder, but not for a whole core. Citation needed, but I remember that the decoder is about 10% of a Ryzen core's power budget, and of course that is with a few techniques better than complete brute force.