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Yes, the cluster autoscaler on AWS can scale below the desired capacity of an autoscaling group. This can happen when the cluster has idle nodes that are not being used or when there is insufficient demand for resources. In such cases, the cluster autoscaler may reduce the number of nodes in the cluster to save on resources and costs. However, it is important to ensure that the minimum size of the autoscaling group is set appropriately to avoid the cluster autoscaler scaling below the minimum required capacity.