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Hello
AutoScaling will not rebalance existing instances based on changes to the allocation strategy. Additionally, its impossible to change the instance type of a running EC2 instance (inside of AutoScaling or not).
You can enable Capacity Rebalancing on the group, and AutoScaling will try to proactively replace instances which are going to be terminated by spot soon, but this isn't constantly monitoring price/capacity, it only happens when Spot sends a notification to AutoScaling.
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