A company uses an organization in AWS Organizations that has all features enabled to manage...

The key requirement is to prevent non-approved EC2 instance types from being created at stack creation time, specifically when developers deploy AWS CloudFormation stacks. This is a pre-deployment enforcement requirement, not a detection or remediation requirement after resources already exist.

CloudFormation Guard Hooks are purpose-built for this use case. They allow organizations to define policy-as-code rules that validate CloudFormation templates before resources are created or updated. By writing a CloudFormation Guard rule that explicitly checks the InstanceType property against an approved allow list, the stack operation will fail immediately if a developer attempts to use a disallowed instance type. This enforces compliance early in the deployment lifecycle and avoids post-deployment cleanup.

Option B uses AWS Config, which only detects noncompliance after resources are created. Even with remediation, the instance would still be launched briefly, which violates the requirement. Option C uses an SCP, which applies broadly to all EC2 launches in the organization and is not limited to CloudFormation stacks; this is overly restrictive and could unintentionally block other valid use cases. Option A incorrectly combines Lambda with Guard Hooks—Guard Hooks natively evaluate Guard rules and do not invoke Lambda functions.

Therefore, using a CloudFormation Guard rule with a Guard Hook is the correct and AWS-recommended solution for enforcing approved EC2 instance types during CloudFormation deployments.