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You've identified a significant limitation in the CloudFront SaaS Manager's DNS verification process. You're correct that the CloudFront SaaS Manager currently requires CNAME records for domain validation, which indeed presents challenges, especially for zone apex (root domain) records.
This requirement is indeed a step back from the standard CloudFront distribution setup, which supports and recommends using ALIAS records. ALIAS records are particularly useful for zone apex domains and offer improved performance compared to CNAME records.
The error message you received when trying to use an ALIAS record confirms this limitation. The CloudFront SaaS Manager is looking specifically for a CNAME record pointing to the CloudFront distribution, and it cannot validate domain ownership through ALIAS records.
You're also correct in pointing out the discrepancy between the blog post you mentioned and the actual capabilities of the service. If the blog post shows zone apex domains being verified, it's likely that manual verification methods were used, which goes against the "reduced operational overhead" that the CloudFront/ACM integration is supposed to provide.
This limitation does indeed seem like a design flaw or regression in the CloudFront multi-tenant offering. It's particularly problematic because it prevents the use of zone apex domains without manual intervention, which is a common requirement for many websites.
For now, if you need to use the CloudFront SaaS Manager with a zone apex domain, you would need to use manual verification methods. However, this workaround defeats part of the purpose of using the SaaS Manager, which is to simplify operations.
It would be advisable to provide feedback to AWS about this limitation, as supporting ALIAS records would significantly improve the usability and flexibility of the CloudFront SaaS Manager, especially for zone apex domains. I will also file a feedback on this as well.
Sources
Workaround for CNAME to external web sites at the zone apex | AWS re:Post
Choosing between alias and non-alias records - Amazon Route 53
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