The correct answer highlights that the issue stems from the logs being processed by the Logging API before exclusion filters are applied, meaning the quota is still being impacted by the volume of logs initially sent. The solution involves reducing the logs collected at the source. Other options are incorrect because exclusion filters operate post-log submission to Cloud Logging, and no additional permissions are required for the Managed Instance Group to utilize these filters. For further details, refer to the documentation on logging quotas and exclusions.