EC2 cloud node not using more than 1 executor

Problem Statement:
I have launched Node from Clouds option as AWS EC2 spot instance with number of executors set to 4, however I have noticed that the jenkins always launch a new node when a new job is triggered and do not use the available executor from the node already launched and available at that moment.

The node agent status always have the offline/disconnect mark on the machine icon on Manage Jenkins → Nodes page. AgentDisconnectIcon

Jenkins setup:
Jenkins: 2.468
OS: Linux - 5.14.0-427.22.1.el9_4.x86_64
Java: 17.0.11 - Eclipse Adoptium (OpenJDK 64-Bit Server VM)

active-directory:2.35
ansible:403.v8d0ca_dcb_b_502
ansicolor:1.0.4
ant:497.v94e7d9fffa_b_9
antisamy-markup-formatter:162.v0e6ec0fcfcf6
apache-httpcomponents-client-4-api:4.5.14-208.v438351942757
asm-api:9.7-33.v4d23ef79fcc8
authentication-tokens:1.119.v50285141b_7e1
aws-credentials:231.v08a_59f17d742
aws-java-sdk-ec2:1.12.753-463.v071a_97315959
aws-java-sdk-ecr:1.12.753-463.v071a_97315959
aws-java-sdk-minimal:1.12.753-463.v071a_97315959
aws-java-sdk-secretsmanager:1.12.753-463.v071a_97315959
aws-secrets-manager-credentials-provider:1.214.va_0a_d8268d068
bootstrap5-api:5.3.3-1
bouncycastle-api:2.30.1.78.1-248.ve27176eb_46cb_
branch-api:2.1178.v969d9eb_c728e
build-timeout:1.33
build-timestamp:1.0.3
build-token-root:151.va_e52fe3215fc
caffeine-api:3.1.8-133.v17b_1ff2e0599
checks-api:2.2.0
cloudbees-folder:6.942.vb_43318a_156b_2
command-launcher:107.v773860566e2e
commons-lang3-api:3.14.0-76.vda_5591261cfe
commons-text-api:1.12.0-119.v73ef73f2345d
credentials:1371.vfee6b_095f0a_3
credentials-binding:681.vf91669a_32e45
dark-theme:479.v661b_1b_911c01
display-url-api:2.204.vf6fddd8a_8b_e9
docker-commons:439.va_3cb_0a_6a_fb_29
durable-task:555.v6802fe0f0b_82
ec2:1688.v8c07e01d657f
echarts-api:5.5.0-1
eddsa-api:0.3.0-4.v84c6f0f4969e
email-ext:1814.v404722f34263
envinject:2.908.v66a_774b_31d93
envinject-api:1.199.v3ce31253ed13
environment-script:100.v3a_f1a_6a_b_7549
extensible-choice-parameter:1.8.1
font-awesome-api:6.5.2-1
git:5.2.2
git-client:5.0.0
github:1.39.0
github-api:1.321-468.v6a_9f5f2d5a_7e
github-branch-source:1790.v5a_7859812c8d
gradle:2.12
gson-api:2.11.0-41.v019fcf6125dc
instance-identity:185.v303dc7c645f9
ionicons-api:74.v93d5eb_813d5f
jackson2-api:2.17.0-379.v02de8ec9f64c
jakarta-activation-api:2.1.3-1
jakarta-mail-api:2.1.3-1
javax-activation-api:1.2.0-7
javax-mail-api:1.6.2-10
jaxb:2.3.9-1
jdk-tool:73.vddf737284550
jjwt-api:0.11.5-112.ve82dfb_224b_a_d
job-dsl:1.87
joda-time-api:2.12.7-29.v5a_b_e3a_82269a_
jquery3-api:3.7.1-2
json-api:20240303-41.v94e11e6de726
json-path-api:2.9.0-58.v62e3e85b_a_655
junit:1280.v310a_78b_9a_1e0
ldap:725.v3cb_b_711b_1a_ef
mailer:472.vf7c289a_4b_420
markdown-formatter:201.v7057261b_8dff
matrix-auth:3.2.2
matrix-project:832.va_66e270d2946
metrics:4.2.21-451.vd51df8df52ec
mina-sshd-api-common:2.13.1-117.v2f1a_b_66ff91d
mina-sshd-api-core:2.13.1-117.v2f1a_b_66ff91d
node-iterator-api:55.v3b_77d4032326
okhttp-api:4.11.0-172.vda_da_1feeb_c6e
pam-auth:1.11
periodicbackup:2.0
pipeline-build-step:540.vb_e8849e1a_b_d8
pipeline-github-lib:61.v629f2cc41d83
pipeline-graph-analysis:216.vfd8b_ece330ca_
pipeline-graph-view:313.v1322ce83d680
pipeline-groovy-lib:727.ve832a_9244dfa_
pipeline-input-step:495.ve9c153f6067b_
pipeline-milestone-step:119.vdfdc43fc3b_9a_
pipeline-model-api:2.2205.vc9522a_9d5711
pipeline-model-definition:2.2205.vc9522a_9d5711
pipeline-model-extensions:2.2205.vc9522a_9d5711
pipeline-stage-step:312.v8cd10304c27a_
pipeline-stage-tags-metadata:2.2205.vc9522a_9d5711
plain-credentials:183.va_de8f1dd5a_2b_
plugin-util-api:4.1.0
postbuildscript:3.3.0-654.v67cf36130d78
rebuild:332.va_1ee476d8f6d
resource-disposer:0.23
scm-api:696.v778d637b_a_762
script-security:1341.va_2819b_414686
shared-workspace:1.0.2
snakeyaml-api:2.2-111.vc6598e30cc65
ssh-credentials:343.v884f71d78167
ssh-slaves:2.973.v0fa_8c0dea_f9f
sshd:3.330.vc866a_8389b_58
structs:338.v848422169819
theme-manager:262.vc57ee4a_eda_5d
timestamper:1.27
token-macro:400.v35420b_922dcb_
trilead-api:2.147.vb_73cc728a_32e
variant:60.v7290fc0eb_b_cd
workflow-aggregator:600.vb_57cdd26fdd7
workflow-api:1322.v857eeeea_9902
workflow-basic-steps:1058.vcb_fc1e3a_21a_9
workflow-cps:3908.vd6b_b_5a_a_54010
workflow-durable-task-step:1360.v82d13453da_a_f
workflow-job:1436.vfa_244484591f
workflow-multibranch:791.v28fb_f74dfca_e
workflow-scm-step:427.v4ca_6512e7df1
workflow-step-api:678.v3ee58b_469476
workflow-support:920.v59f71ce16f04
ws-cleanup:0.46

Executornotworking
attaching screenshot for the executors and build in queue