All three instances are active.
In this case, a new instance will not be spawned for autoscaling since your license limit is already consumed completely.
|Two instances are active||One instance is marked as DOWN|
Here, a new instance is spawned by replacing the DOWN instance.
One instance is active
One instance is marked as DOWN
A new instance will be spawned replacing the DOWN instance. After autoscaling, you can accomodate one more active instance in this scenario.