To find the root cause of these types of errors, capa-controller manager logs are a good place to start
These logs can be obtained by using the following command
kubectl logs deployment.apps/capa-controller-manager -n capa-system manager > capa-system-deployment.log
From the logs, it is clear that this is an issue where the AWS account has reached the maximum number of VPC it can create.
I1219 19:50:15.219038 1 awsmachine_controller.go:457] controllers/AWSMachine "msg"="Cluster infrastructure is not ready yet" "awsMachine"="oom-tkgm-md-0-84mlb" "cluster"="oom-tkgm" "machine"="oom-tkgm-md-0-6d8bd87fbd-zcg8q" "namespace"="tkg-system" E1219 19:50:15.314176 1 controller.go:257] controller-runtime/controller "msg"="Reconciler error" "error"="failed to reconcile network for AWSCluster tkg-system/oom-tkgm: failed to create new vpc: failed to create vpc: VpcLimitExceeded: The maximum number of VPCs has been reached.\n\tstatus code: 400, request id: 92f56f54-1b1e-4fa3-b0f5-d56be956fe30" "controller"="awscluster" "name"="oom-tkgm" "namespace"="tkg-system" I1219 19:50:15.315595 1 awscluster_controller.go:160] controllers/AWSCluster "msg"="Reconciling AWSCluster" "awsCluster"="oom-tkgm" "cluster"="oom-tkgm" "namespace"="tkg-system"