To resolve the ‘Maximum recursive updates exceeded’ error in Vue.js, often caused by complex nested validations, the implemented solution involves dividing the validation logic across two distinct components. By avoiding deep nesting, this method simplifies the validation process. Each component (‘First.vue’ and ‘Second.vue’) independently handles its segment of the validation logic using Vuelidate. This separation ensures more manageable and modular code, significantly reducing the risk of triggering recursive update errors that are common in tightly nested validation structures. This approach not only enhances code readability and maintainability but also improves performance by preventing the excessive recursive calls that can occur in deeply nested validation scenarios.