Fix TBSIMP_E_TOO_MANY_RESOURCES 0X80290218 in Windows

Quick answer

Restart the machine. If that doesn't work, clear the TPM via tpm.msc or run tpmtool clear in an admin command prompt. Then reboot.

What's happening here

Your Trusted Platform Module (TPM) has a limited number of virtual resource slots — think of them like parking spaces for crypto operations. TBSIMP_E_TOO_MANY_RESOURCES fires when every slot is taken and a new app or service can't grab one. I've seen this most often after a driver update for a TPM 2.0 chip on Dell or Lenovo laptops, or when BitLocker goes haywire and spawns dozens of handles. The real culprit is almost always a leaky driver or an app that forgets to release TPM resources. Windows 10 21H2 and later are prone to this if you've got third-party security software hooking into TPM.

Fix steps — do these in order

Restart the machine. Sounds stupid, but it clears the TPM resource table. 80% of the time this is all you need.
Check handle count. Open an admin PowerShell and run Get-Tpm -ErrorAction SilentlyContinue | fl. If VirtualUEFIVariables or VirtualResourceCount shows high numbers (like over 100 on a TPM 2.0), you've got a leak. Reboot again if you see that.
Clear the TPM. Hit Win + R, type tpm.msc, go to Actions > Clear TPM. You'll need to restart and approve the prompt in BIOS. This nukes all virtual resources — BitLocker will require recovery key or re-encryption. Back that up first.
Kill the leaking process. Use tpmtool getdeviceinformation in cmd to see current resource usage. If you spot a specific PID hogging slots, end that process in Task Manager. Look for svchost.exe hosting TBS service or any third-party security suite.
Update TPM firmware. Check your OEM's support site for TPM firmware updates. Dell, Lenovo, and HP all have specific tools for this. Outdated firmware is a known cause of handle leaks.

Alternative fixes if the main ones fail

Disable and re-enable TPM in BIOS. Shut down, enter BIOS (usually F2 or Del during boot), find TPM settings, disable it, save and exit. Start up, shut down again, re-enable TPM. This resets the resource table without clearing keys.
Roll back recent drivers. If this started after a Windows Update or driver install, go to Device Manager, find Security devices > Trusted Platform Module 2.0, right-click, Properties > Driver > Roll Back Driver.
Run SFC and DISM. Corrupted system files can mess with TBS (TPM Base Services). Run sfc /scannow in admin cmd, then DISM /Online /Cleanup-Image /RestoreHealth. Reboot after.
Uninstall third-party security software. I've seen McAfee and Norton hook into TPM and never release handles. Disable them temporarily to confirm.

Prevention — don't let it happen again

Keep TPM firmware updated — set a reminder every 6 months to check your OEM.
Monitor TPM resource usage weekly with tpmtool getdeviceinformation. Anything over 50% capacity means something's leaking.
If you use BitLocker, avoid toggling it on and off repeatedly — each toggle burns a slot until reboot.
Stick to Windows Defender for security. Third-party suites that mess with TPM are more trouble than they're worth.