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Can you make sure, you are getting this error in the same region where you requested the quota limit increase, as quota limit is region specific.
I hope you'd have already looked at this re:Post Knowledge Center Article, this has very useful details covering your problem statement. Though this is for on-demand but for spot instances also, it's valid.
Also, check this thread-1 and thread-2.
Hope you find this useful.
Abhishek
thank you for your answer. I have double checked and it it on the same region.
Though you mentioned that quota has been increased, I just want to check once more on this, is it reflected on quota page or you just requested. Reason for asking this is, it takes sometime to get that taken care of. I have seen this issue couple of times, once my request was denied due to unavailability of g4dn in that region and other time it took almost a day to get my request approved.
I found this article telling that VcpuLimitExceeded could hide another issue "InsufficientInstanceCapacity" https://www.ctrlstack.com/blog/aws-flawed-silent-but-deadly-why-aws-errors-stink/