This is a false positive and there is actually no issue with the license capacity.
Symptoms:
Workload domain creation fails at task "Validate Workload Domain Deployment Specification" with "PUBLIC_DOMAINSPEC_VALIDATION_FAIL". The error in the domainmanager.log looks like:
domainmanager.log
[YYYY-MM-DDTHH:MM:SS] ERROR [vcf_dm,0113f591ae534a6d,7287] [c.v.v.v.f.a.ValidateDomainSpecAction,dm-exec-19] Domain Spec validation failed with errors [LICENSE_INSUFFICIENT_CAPACITY]
[YYYY-MM-DDTHH:MM:SS] ERROR [vcf_dm,0113f591ae534a6d,7287] [c.v.e.s.o.model.error.ErrorFactory,dm-exec-19] [71SSU2] PUBLIC_DOMAINSPEC_VALIDATION_FAIL
ED Failed to validate domain spec
com.vmware.evo.sddc.common.core.error.CompositeInvalidInputException: Failed to validate domain spec
at com.vmware.vcf.vimanager.fsm.actions.ValidateDomainSpecAction.execute(ValidateDomainSpecAction.java:61)
at com.vmware.vcf.vimanager.fsm.actions.ValidateDomainSpecAction.execute(ValidateDomainSpecAction.java:29)
at com.vmware.evo.sddc.orchestrator.platform.action.FsmActionState.invoke(FsmActionState.java:62)
at com.vmware.evo.sddc.orchestrator.platform.action.FsmActionPlugin.invoke(FsmActionPlugin.java:159)
at com.vmware.evo.sddc.orchestrator.platform.action.FsmActionPlugin.invoke(FsmActionPlugin.java:144)
This error is seen when the capacity of the provided license for either vSphere or vCenter is less than 2x the requirement. For example, if the provided ESXi Hosts for workload domain creation require 24 CPU packages from the vSphere license and there are less than 48 CPU packages available in the provided vSphere license.