What I think you have found here is actually more useful than a CTL ceiling. You have found the way your body tells you that the relationship between training load and recovery has started to break down.
There is an important difference.
CTL 140 was the external load. The repeated waking, changes in energy, mood, and eventually how the training felt were the internal response. That relationship is probably more valuable to you going forward than the CTL number itself.
I would also be a little careful about thinking of cruising altitude as one fixed number. I doubt you have a CTL of, say, 115 that is sustainable and 125 that is not. That boundary is going to move depending on how the load was created, how much intensity is in it, fueling, life stress, heat, sleep going into the block, and how many weeks you have already been carrying fatigue.
Two weeks at the same CTL can be physiologically very different.
The other thing I would pay close attention to at 16000 kJ a week is fueling. At that level of energy turnover, nutrition becomes part of the training load itself. You can finish the week in reasonable energy balance and still spend large portions of each day deeply underfueled. There is good evidence in male endurance athletes that this can alter the hormonal environment and suppress recovery even when total daily intake does not look obviously inadequate.
So if I were trying to find your cruising altitude, I would not immediately start climbing back toward 140.
I would first get sleep, mood, energy and normal ride sensations completely back to baseline. Then I would build again in small steps and hold each level long enough to see whether it is actually being absorbed.
The question I would keep asking is not, “Can I complete this training?”
It would be, “Is this same training still costing me the same amount?”
If your normal endurance power suddenly needs more concentration, RPE starts creeping up, heart rate behaviour changes, sleep starts fragmenting, motivation becomes less spontaneous, or you stop feeling normal between sessions, the internal cost is rising even if the power numbers still look fine.
That is usually the part athletes miss because performance can stay surprisingly intact for a while.
And your observation about sleep creating a loop is important. Once sleep starts deteriorating, the load that was marginally sustainable yesterday may no longer be sustainable tomorrow. Poor recovery lowers your capacity to absorb the next dose, which worsens recovery again. So by the time sleep has been bad for a week, the sensible response probably is not simply to find a slightly lower CTL. It is to restore the system first.
One other terminology point. If you came back reasonably quickly once you reduced the load, I would probably describe what happened as overreaching rather than true overtraining syndrome. True overtraining syndrome is the ugly end of the spectrum and can involve a prolonged performance decline lasting months.
But that does not make what you found any less useful.
If anything, you may now have something better than a target CTL. You have an early warning signature that is specific to you.
The trick now is learning how close you can operate to that boundary without repeatedly crossing it.