Step 1: Let the complex number \( z \) be represented as \( z = x + iy \), where \( x \) and \( y \) are real numbers.
Step 2: Substitute \( z = x + iy \) into the given equation \( |z| = z + 1 + 2i \).
Recall that \( |z| = |x + iy| = \sqrt{x^2 + y^2} \).
The equation becomes:
\[
\sqrt{x^2 + y^2} = (x + iy) + 1 + 2i
\]
Step 3: Group the real and imaginary parts on the right side of the equation.
\[
\sqrt{x^2 + y^2} = (x + 1) + i(y + 2)
\]
Step 4: Equate the real and imaginary parts on both sides.
The left side, \( \sqrt{x^2 + y^2} \), is a real number. Therefore, its imaginary part is 0.
Equating the imaginary parts:
\[
0 = y + 2 \quad \Rightarrow \quad y = -2
\]
Equating the real parts:
\[
\sqrt{x^2 + y^2} = x + 1
\]
Step 5: Substitute the value \( y = -2 \) into the equation for the real parts.
\[
\sqrt{x^2 + (-2)^2} = x + 1
\]
\[
\sqrt{x^2 + 4} = x + 1
\]
Step 6: Solve the equation for \( x \).
Before squaring both sides, note that \( \sqrt{x^2 + 4} \ge 0 \), so we must have \( x + 1 \ge 0 \), which means \( x \ge -1 \).
Square both sides:
\[
(\sqrt{x^2 + 4})^2 = (x + 1)^2
\]
\[
x^2 + 4 = x^2 + 2x + 1
\]
Subtract \( x^2 \) from both sides:
\[
4 = 2x + 1
\]
\[
3 = 2x
\]
\[
x = \frac{3}{2}
\]
Step 7: Verify the condition \( x \ge -1 \).
Since \( x = \frac{3}{2} \), and \( \frac{3}{2} > -1 \), the value of \( x \) is valid.
Step 8: Write the solution for \( z \) and compare with options.
The solution is \( z = x + iy = \frac{3}{2} + i(-2) = \frac{3}{2} - 2i \).
This matches option (A).