You are misreading it. It is saying your are 206 VM's OVER your threshold. If there was space remianing it would look like this:
By the way, where can I find the Views/Report to print out the all the informations in the Capacity Remaining, such as Total Capacity, Buffers, Usable Capacity, Peak, Remaining values as per shown in the Capacity Remaining Tab. As you know management likes to see report & I can't seem to find any of those from the default View/Report. I can't bring over my laptop over to talk to my management & currently the only way I do it is screenshot 
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Was told need to customize it but I didn't find any "Capacity Remaining" metric to choose during the customization.
If the built-in reports don't suit your needs, you can go to Content--> Views, and create a custom View. Once completed with the metrics and view type you want, you can go to Content--> Reports, and create a report from that view. I just created a quick one that I called cluster capacity trend, using CPU|Capacity Remaining %, Mem|CPU|Capacity Remaining %, and Disk Space|CPU|Capacity Remaining %, and chose to use a trend with a 30 day forecast on each metric.
Let me know if you need help creating these.
