I was completely understanding the solution to this problem until you mentioned the formula i.e. A+M+D -(exactly 2) - 2*(all 3). Doesn’t the principle of Inclusion and Exclusion state that one needs to add the Intersection of all 3 sets since it gets added thrice initially first, gets subtracted thrice so hence it needs to be added again ? Screenshot attached for reference.
It is my understanding that since there are 3 (exactly two) regions and all 3 regions contain the (all 3 intersect) region, when we subtract all 3 (exactly two intersect) regions, the (all 3 intersect) region gets subtracted thrice as well.