INSTALL_FAILED_INSUFFICIENT_STORAGE is a most common error that an Android Developer faces while trying to run an application on the Emulator.
To fix this issue:
- Right Click on your Android Project Folder,
- goto Run As -> Run Configurations
- Select your Application at the left section
- Move to Target Tab
- In Additional Emulator Command Line Options add : -partition-size 2048
- Apply the Changes are run the Emulator.

Go to Run - Run Configurations

Steps to reslove INSTALL_FAILED_INSUFFICIENT_STORAGE Android error
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