Yes when launching ec2 instances you use the local connection.  They all 
launch fine and are able to be picked up by the wait for ssh task:
- name: Wait for SSH
      wait_for:
        host: "{{ item.private_ip }}"
        port: 22
        delay: 10
        timeout: 320
        state: started
      with_items: "{{ ec2_info.instances }}"

just not the add_host task.

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