The MSDN page that says choice allows "one and only one of the elements contained in the selected group" is badly phrased. Well, no, that's too generous. As a description of xsd:choice, it's flat wrong.
A choice contains zero or more alternatives, and matches part of the input if and only if at least one of those alternatives matches the input. (In practice, this almost always means 'if exactly one of those alternatives matches the input': if more than one alternative matches the input, the content model almost certainly violates the 'Unique Particle Attribution' rule.)
So a choice among alternatives A1, A2, A3, ... An matches a sequence of elements in the input if and only if A1 matches that sequence, or A2, or A3, ..., or An.
If each alternative A1, ..., An is a single element with minOccurs = maxOccurs = 1, so none of them are repeatable, and if the choice itself is not repeatable, then the description you quote is more or less accurate. But any of several things can result in multiple elements being matched by a single choice:
The choice may itself be repeatable (as already pointed out by lexicore); the following choice matches any sequence of A, B, and C elements:
<xsd:choice minOccurs="0" maxOccurs="unbounded">
<xsd:element ref="A"/>
<xsd:element ref="B"/>
<xsd:element ref="C"/>
</xsd:choice>
The individual alternatives may be repeatable; the following choice matches any non-empty sequence of A elements, or any non-empty sequence of B elements, or exactly one C element:
<xsd:choice>
<xsd:element ref="A" maxOccurs="unbounded"/>
<xsd:element ref="B" maxOccurs="unbounded"/>
<xsd:element ref="C"/>
</xsd:choice>
The individual alternatives may be sequences or choices that match more than one element; the following choice matches any non-empty sequence of A and B elements, or the sequence D, E, F:
<xsd:choice>
<xsd:choice maxOccurs="unbounded">
<xsd:element ref="A"/>
<xsd:element ref="B"/>
</xsd:choice>
<xsd:sequence>
<xsd:element ref="D"/>
<xsd:element ref="E"/>
<xsd:element ref="F"/>
</xsd:sequence>
</xsd:choice>
The answer to your question
So how many elements can be found inside the type which has a choice indicator inside?
is the same as the answer to the question
So how many elements can be found inside an element?
or
So how long is a sequence of symbols which matches a regular expression?