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Yes,SQL Server can perform join operations on3 tables each having a data record count of Million.
It is advisable to do not use varchar data type in primary keys of these tables & columns that are used in joining of these tables so that this join operation can be smoothly executed.
I think it does, but not sure the limitation as such of million records, but it is going to create overhead on DB for sure and may hang on for longer.
Better advise may be split your queries appropriately and create tempdb..tables or #tables with only required data from the original tables and proceeding with the actual requirement is the best solution I can think of as the alternate. Thanks.