[Bug]: provider-aws-s3 - Not able to create AWS S3 bucket after upgrading to v1.16.0

[vilkovtato]

Is there an existing issue for this?

• I have searched the existing issues

Affected Resource(s)

s3.aws.upbound.io/v1beta1(2) - Bucket

Resource MRs required to reproduce the bug

apiVersion: s3.aws.upbound.io/v1beta2
kind: Bucket
metadata:
  name: bump-provider-test
  namespace: crossplane
spec:
  forProvider:
    region: us-east-1

Steps to Reproduce

• install aws s3 provider:

apiVersion: pkg.crossplane.io/v1
kind: Provider
metadata:
  name: provider-aws-s3
spec:
  package: xpkg.upbound.io/upbound/provider-aws-s3:v1.16.0

• this will automatically install aws-provider-family version v1.16.0
• apply above mentioned s3 bucket manifest

What happened?

bucket was not created

Relevant Error Output Snippet

observe failed: failed to observe the resource: [{0 reading S3 Bucket
        (bump-provider-test): operation error S3: HeadBucket, https
        response error StatusCode: 403, RequestID: xxx, HostID:xxx,
        api error Forbidden: Forbidden  []}]

Crossplane Version

1.17.1

Provider Version

v1.16.0

Kubernetes Version

1.29

Kubernetes Distribution

EKS

Additional Info

this is not problem of access rights:

• different provider (ec2) is working - which was confirmed by successfully creating AWS security group...
• in order to be sure, the AWS IAM Role used was given full s3 rights...
• the s3: HeadBucket action does not exists in AWS

both v1beta1/v1beta2 has the same problem