Answer
Before assuming it's purely a capacity problem, check that update's Installation Notes for a required post-install step — some Apps 10 updates specifically require reinstalling Print Agent and Crystal Web Service as part of their documented post-install steps, and skipping that reinstall after an update has been linked to exactly this kind of intermittent 'busy instance' failure under load that wasn't present before the update. Confirm the reinstall requirement for your specific update before adding more CWS instances as the fix.