Unable to create notebook instance- ResourceLimitExceeded

The issue you're experiencing with creating an ml.t2.xlarge notebook instance in Amazon SageMaker, despite having no instances running and a default quota of 6, could be due to several factors:

1. Region-specific quota: Make sure the quota you're checking is specifically for the London region, as quotas can vary by region.

2. Spending limit: Your $10 spending limit might be restricting the creation of new resources, even if you're within your instance quota. SageMaker notebook instances can incur costs that may quickly approach or exceed this limit.

3. Account restrictions: If your account has had any recent payment issues or restrictions, it might affect your ability to create new resources, even if your payment details are currently okay.

4. Quota application delay: If you've recently increased your quota, it may take some time for the change to propagate through AWS systems.

5. Different resource type: Ensure you're looking at the correct quota for SageMaker notebook instances, not EC2 instances or other resource types.

To resolve this issue, you can try the following steps:

1. Double-check that you're looking at the correct quota for SageMaker notebook instances in the London region.

2. Consider increasing your spending limit if possible, as $10 might be too restrictive for running SageMaker notebook instances.

3. If the issue persists, contact AWS Support. They can provide specific information about your account status and any limitations that might be in place.

4. Try creating a notebook instance with a different instance type to see if the issue is specific to ml.t2.xlarge.

5. Wait for 24-48 hours after increasing the quota to ensure the changes have fully propagated.

If none of these steps resolve the issue, you may need to open a support case with AWS to investigate any account-specific restrictions or quota issues that might not be visible to you.
Sources
Error: Unable to complete operation. Please try again when running notebook instance in sagemaker | AWS re:Post
ResourceLimitExceed problem | AWS re:Post
Request a Service limit increase for use with a Amazon SageMaker Notebook Instance - AWS DeepComposer
Request for Increase in 'ml.r5.4xlarge' Instance Limit for Notebook Instance | AWS re:Post