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for example Currently there are 10 pods in this project using up 1900mCPUs and 1900 MiBs a new pod comes along which pushes those limit? does the new pod not spin up until resources are freed up do the already running pods get interrupted ?

Resource quotas at project level limits the resources available for project. Once those limits are reached, no new pods can be created in that project. Pod does not push the limits. Already running pods won't get affected.