Match found but clients not connecting, event on server: Server having issues (CPU over limit)

I set up Matchmaking and UGS Hosted Server. For some time, everything worked well, but recently whenever 2 clients try to connect, debugging show that a match is found and clients are trying to connect to the Server. It’s taking a while (much longer than expected) and afterwards I get the following error on the client side:

Failed to connect to server.

UnityEngine.Debug:LogError (object)
Unity.Netcode.Transports.UTP.UnityTransport:processEvent () (at ./Library/PackageCache/com.unity.netcode.gameobjects@1.9.1/Runtime/Transports/UTP/UnityTransport.cs:889)
Unity.Netcode.Transports.UTP.UnityTransport:Update () (at ./Library/PackageCache/com.unity.netcode.gameobjects@1.9.1/Runtime/Transports/UTP/UnityTransport.cs:938)

I added debug lines in the server in the ApprovalCheck phase on the server, but they are not shown in the server logs, which makes me assume that the clients are not even able to make a solid connection yet. Debugging on the clients show that the problem happens on the StartClient() method.
In the server events in Unity Dashboard, I see the following issue:
Server having issues (CPU over limit. Combined core(s) usage 123.92% (61.96% of machine), only 60.00% allowed with 0 players) for 120 seconds (Restarted 0 time(s))

I’m trying to solve this for a while now and can’t reach a conclusion. I’m not sure what changed between my successful games and the attempts in which it started happening. No major change happened on the actual game code between the successful and failed attempts.

Can I maybe get some assistance?
Summary of the issue:
A. Both clients are using Anonymous Sign in using UGS.
B. Both clients start matchmaking and a match is found.
C. Client take a long time to load the match and are stuck at loading.
D. Clients receive the “Failed to connect to Server” error.
E. Approval check on the Server is covered with Debug Lines that don’t get written to the log, so I assume approval check is not even getting executed.
F. A few seconds after clients are trying to connect to the server, I see the CPU event on the server, but no additional information in the logs.

UPDATE: Whenever I configure a fleet with only 1 server, the event about the CPU does not show up. However, the clients are still not able to connect with the same error as before.