The correct answer is Changing a project type requires creating a new project and migrating the issues into it.

This is true because team managed and company managed projects use different configuration models and there is no single project setting that converts one type to the other. To change a project from team managed to company managed you must create a new company managed project and move the issues into it, and you should plan to map fields, recreate workflows, and reapply permissions because many settings do not transfer automatically.

Project administrators can update the project type from the project settings is incorrect because there is no in place toggle for project type in project settings and project administrators cannot convert the project type themselves.

Team managed projects also use the same project type setting as company managed projects is incorrect because team managed projects use a different, simplified configuration model that is not the same as the company managed scheme and they are treated as distinct project types.

A single project may be assigned to multiple project types at the same time is incorrect because a project has a single project type and it cannot be simultaneously classified as more than one type.

Full AWS Practitioner Certification Question