Short answer: large Chinese dictionaries list 370,000+ entries, but that number is useless for planning. What matters is that around 3,000 characters cover roughly 99% of everyday written Chinese, and the official HSK standard puts a usable working vocabulary at 3,245 words (HSK 4) and a strong one at 5,456 words (HSK 6). Native-speaker adults are usually estimated at 20,000–30,000 words.
The confusion behind this question is that Chinese counts two different things: characters (字) and words (词). Most words are built from two characters, so the two numbers move independently.