A lot depends on Tank size, species, and stocking order.
Here is my experience:
I have one species only (Yellowbelly's) in my 75g eel tank, started with 10 now have 6, but not sure if they died, were killed by other damsels, or were eaten by the eel. They do not show much if any aggression towards each other.
In my bigger tank (240g) I have 4 x 4 stripes, large Blue Velvet, Yellowbelly, Azure, Blue Fiji, and Starkii and I have no problems what so ever, even when adding a new comer. But this is an 8' tank with lots of LR.
I think tank size and Damsel size and order of stocking matter a lot. I would agree if you add more, unless they are much bigger they may be doomed.