User Creation issue in IAM

Hello.

It's likely that the IAM user you're using doesn't have the necessary IAM policies configured.
It looks like you are using an IAM user called "User1-Dev", so try setting the "AdministratorAccess" policy for this user.
Setting this policy allows you to do almost anything.
https://docs.aws.amazon.com/aws-managed-policy/latest/reference/AdministratorAccess.html

Once you have confirmed that you can perform the operation, try narrowing down the policies you need.

It appears you're experiencing changes in the IAM user creation interface. AWS has indeed updated the IAM console interface, which explains why you're seeing a checkbox for "Provide user access to the AWS Management Console - optional" instead of the radio button options you were familiar with.

Regarding the authorization error, this is a permissions issue. When you create a new IAM user, they don't automatically have permissions to perform actions like creating EC2 instances or using the EC2:DescribeInstances action. You need to explicitly attach the appropriate permissions policies to your new user.

Here's how to resolve this:

1. After creating the IAM user, you need to add permissions policies to the user. Without these policies, the user won't be able to perform any actions in AWS.

2. For EC2 instance management, you should attach a policy that includes EC2 permissions (such as AmazonEC2FullAccess or a custom policy with specific EC2 permissions).

3. As a best practice, follow the principle of least privilege by granting only the permissions the user needs.

4. Remember that when signing in as an IAM user, you'll need three pieces of information: your AWS account ID or alias, the IAM user name, and the password.

Also, AWS recommends using IAM Identity Center (formerly AWS Single Sign-On) for user management rather than creating IAM users directly, which might explain the interface changes you're seeing as AWS pushes users toward this more secure approach.
Sources
IAM User Creation | AWS re:Post
Troubleshoot IAM - AWS Identity and Access Management
New IAM user for AWS console | AWS re:Post

Regarding the authorization error you're seeing when trying to view EC2 instances - this is happening because the new user doesn't have the necessary permissions yet. The IAMUserChangePassword policy you mentioned only allows password changes, not EC2 access.

Here's how to fix this:

Adding the EC2 Read-Only Policy:

1. Sign in to the AWS Console as your root user
2. Go to IAM → Users
3. Click on your "Test" user
4. Go to the Permissions tab
5. Click "Add permissions"
6. Select "Attach policies directly"
7. Search for AmazonEC2ReadOnlyAccess and check the box next to it
8. Click "Next" and then "Add permissions"

This policy includes the ec2:DescribeInstances permission that's currently missing, which is why you're seeing that error message.

Once you add this policy, your user should be able to view all EC2 instances (including the ones created by root) without any issues. The permissions apply immediately, though sometimes it takes 30-60 seconds to fully propagate.

The reason AdministratorAccess works is because it grants full permissions to everything, but that's definitely not what you want for security reasons. The AmazonEC2ReadOnlyAccess policy will give your user exactly what they need - the ability to view instances without being able to create, modify, or delete them.

Let me know if you run into any issues after adding the policy, or if you need help with anything else.

Image 1 is provided in response of the above issue image 2 user permissions

Comment related screen shots