### Is there an existing issue for this?

- [X] I have searched the existing issues

### Current Behavior

```
An error occurred (500) when calling the CreateGrant operation (reached max retries: 4): <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2 Final//EN">
<title>500 Internal Server Error</title>
<h1>Internal Server Error</h1>
<p>The server encountered an internal error and was unable to complete your request. Either the server is overloaded or there is an error in the application.</p>
```

### Expected Behavior

_No response_

### How are you starting LocalStack?

Custom (please describe below)

### Steps To Reproduce

#### How are you starting localstack (e.g., `bin/localstack` command, arguments, or `docker-compose.yml`)

    helm install localstack/localstack

#### Client commands (e.g., AWS SDK code snippet, or sequence of "awslocal" commands)

    aws kms create-grant --key-id=738f46cb-444b-4fc5-9c6f-8c1165279dbb --grantee-principal=arn:aws:iam::000000000000:role/test --operations=Encrypt


### Environment

```markdown
- OS: 
- LocalStack: 0.12.17
```


### Anything else?

_No response_
return _has_stack_status(cfn_client, ["CREATE_COMPLETE", "CREATE_FAILED"])
@pytest.fixture
def is_stack_updated(cfn_client):
    return _has_stack_status(cfn_client, ["UPDATE_COMPLETE", "UPDATE_FAILED"])
def _has_stack_status(cfn_client, statuses: List[str]):
    def _has_status(stack_id: str):
        def _inner():
            resp = cfn_client.describe_stacks(StackName=stack_id)
            s = resp["Stacks"][0]  
            return s.get("StackStatus") in statuses
        return _inner
    return _has_status
@pytest.fixture
def is_change_set_finished(cfn_client):
    def _is_change_set_finished(change_set_id: str):
        def _inner():
            check_set = cfn_client.describe_change_set(ChangeSetName=change_set_id)
            return check_set.get("ExecutionStatus") == "EXECUTE_COMPLETE"
        return _inner
    return _is_change_set_finished
only_in_alpine = pytest.mark.skipif(
    not is_alpine(),
    reason="test only applicable if run in alpine",
)