A company is using Cloud NAT to allow private Compute Engine instances to access the internet. They notice that traffic from some instances is not being NATed. What is the most likely cause?
Instances with external IPs do not use Cloud NAT; they directly connect using their external IP.
Why this answer
Cloud NAT only applies to instances that do not have external IP addresses. If an instance has an external IP, it will use that IP for outbound traffic and bypass Cloud NAT.