This is the wrong way to think about this because there's no such thing as infinite capacity. A large distributed system will be simultaneously mostly idle and (in some subcomponents) overloaded. The root cause is not "a component didn't have enough capacity (because of auto scaling failures)", but rather "this complex system collapses (rather than degrade gracefully) when demand exceeds capacity".
When components reach capacity limits, the excess traffic of the lowest priority should be rejected. Rejected traffic should not be retried — in fact, not only should clients not retry these errors, these errors should cause client-side throttling. Traffic isolation should be applied — if the cause of the overload is a single client/customer system, no other system should be affected.
Nearly a decade ago I wrote about some of the techniques we applied at Google to implement these protections: https://sre.google/sre-book/handling-overload/ Most other large internet services have since copied them, afaik.