B The "Learn from Experience" principle does suggest that lessons should be actively sought when starting a project, during the project's progress, and as the project closes. Initiating a project typically involves gathering information and setting up the project, and it's an appropriate time to seek lessons from past projects that can inform the current one. Therefore, statement B is not correct because seeking lessons when initiating a project is indeed a recommended practice.

To my opinion the keyword here is SOUGHT. Lessons shall be sought by everyone in the project team at any moment during the project lifecycle (so also during Initiation Stage). Conversely, it has no more sense to search for lessons as the project closes. At project closure, Learn from Experience principle focuses on passing on (to the Organization) the project's lessons learned.

Tricky question - B is correct (reference page 21/22 of the Manual). Yet page 21 states "Learning from experience takes place throughout PRINCE2" so I have empathy with Paul that during assembly of the PID with its plans and approaches, it would make sense to garner any lessons learned.

A. When Starting a Project Reasoning: According to Official documentation Lessons Log is first created during "Starting a Project" (Ref. Section 14.3 p166 and 14.4.2 p169)

Not sure this is correct. See 16.4.2 page 199. Third bullet point - seek lessons from similar previous projects. In any case, it would be totally counter intuitive not to seek lessons at such a formative stage of the project's lifecycle. (Unless I am misreading the question.)

B is correct

Correct Answer should be B, as all others are options mentioned in Learn From Experience Principle

Read Page 21 Section : 3.2