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AWS Certified Solutions Architect - Professional · AWS
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B is correct, when you try to add more instances to a placement group with insufficient capacity, it might result in an "Insufficient capacity" error. One way to troubleshoot this issue is by recycling (stopping and starting) all existing instances in the placement group. This helps AWS reschedule your instances to accommodate the new ones. Other options do not solve the root cause of the problem.
Option B - https://docs.aws.amazon.com/AWSEC2/latest/UserGuide/troubleshooting-launch.html#troubleshooting-launch-capacity OR https://repost.aws/knowledge-center/ec2-insufficient-capacity-errors
Option B