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Hello.
Based on this documentation, it seems that Lightsail managed databases are configured with a custom parameter group when they are created.
https://repost.aws/knowledge-center/lightsail-update-database-parameter
When you create a Lightsail database, that database uses a custom parameter group named after the instance endpoint. Amazon Relational Database Service (Amazon RDS) DB instances use a default DB parameter group. To modify the database parameters for a Lightsail database instance, use the AWS Command Line Interface (AWS CLI).
There is a possibility that this is a bug, so we recommend that you open a case with AWS Support under "Account and billing".
Inquiries under "Account and billing" can be made free of charge.
https://docs.aws.amazon.com/awssupport/latest/user/case-management.html
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By the way, I tried executing the command using my AWS account, and it was executed successfully, so the command itself is correct.
Thank you! I'll open a case as you suggested :)