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Having discussed this with Nvidia, their recommendation is to use MIG to subdivide the GPU for better memory utilization.
There is no resource control when multiple jobs are running in shared mode, this means that pre-empting a given job does not guarantee that there would be resources available for another job to actually start. This would lead to seemingly random failures of the pre-empting job.
This can be revisited as and when there is support in the nvidia api.