- name: Create Auto Scaling Group 
      amazon.aws.autoscaling_group:
      name: "asg"
      launch_template:
        launch_template_name: "launch-template"
      health_check_period: 60
      health_check_type: ELB
      replace_all_instances: true
      min_size: 1
      max_size: 3
      desired_capacity: 2
      region: us-east-1
      replace_all_instances: true
      target_group_arns: "{{ target_group.target_group_arn }}"
      vpc_zone_identifier: ["{{ private_subnet_info1.subnets[0].subnet_id }}", "{{ private_subnet_info2.subnets[0].subnet_id }}"]
      wait_for_instances: false
      wait_timeout: 1800

I can see that is correct in web console after this but no instances are in the target group, so to fix I have to unassign it in the web console and then re-assign it.

After running the ec2 will launch and be assigned to the target group.