I am having the same problem:

I just followed this thread and the response in the answers support
tracker tells this author to file a bug here. And then here you tell him
to go there. What's the deal?

It seems that you AMI creation / registration process is not yet listing
these AMIs as being m3 compatible when they should be. That's
frustrating since m3 is the newest and most efficient machine type.

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https://bugs.launchpad.net/bugs/1280219

Title:
  AWS Marketplace Ubuntu AMI is not compatible with m3.large instances

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