A functional error due to the FIFO becoming full depends on your implementation. Data will not be dropped between the SGDMA and FIFO since both use the streaming valid and ready signals to apply back pressure.
You will need to use two descriptors to move 65kB of memory, descriptors only have a 16-bit length field so that means you can only write up to 65535 bytes total. So it's not that the memory is write protected, the SGDMA just can't write that much data using a single descriptor.
When parked is set then the SGDMA just doesn't flip the owned by hardware bit when the transfer completes. The tricky think is you will not know how many times the same descriptor has been reused by the SGDMA if parked is enabled so that may or may not matter to you.