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For future reference and people having the same issue - to fix my solution, I had to create a Capacity Reservation for the specific instance. I am still not sure if this is the correct/best method for fixing the issue as the documentation is still unclear to a layman. Moreover, the pricing is not very straight forward. In my perspective, the price is double fold on the instance, e.g. an instance that runs $0.45 an hour results in the capacity costing $0.45 an hour. Maybe if an Amazonian can confirm this it would be greatly appreciated.
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