Make sure periodic instance reclaims continues on error

If an instance reclaim operation fails with an exception, no more
instances will be reclaimed. If the failure is permanent, this will
block other instances from being reclaimed for as long as it remains.

Resolves bug 1195029.

Change-Id: I0379d16a1f74344ef44c843ce19a505e31e79bfa
Merge "Make sure periodic instance reclaims continues on error"