### 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 _client("events")
@pytest.fixture(scope="class")
def secretsmanager_client() -> "SecretsManagerClient":
    return _client("secretsmanager")
@pytest.fixture(scope="class")
def stepfunctions_client() -> "SFNClient":
    return _client("stepfunctions")
@pytest.fixture
def dynamodb_create_table(dynamodb_client):
    tables = list()
    def factory(**kwargs):
        kwargs["client"] = dynamodb_client
        if "table_name" not in kwargs:
            kwargs["table_name"] = "test-table-%s" % short_uid()
        if "partition_key" not in kwargs:
            kwargs["partition_key"] = "id"
        kwargs["sleep_after"] = 0
        tables.append(kwargs["table_name"])
        return create_dynamodb_table(**kwargs)
    yield factory
    
    for table in tables:
        try:
            dynamodb_client.delete_table(TableName=table)
        except Exception as e:
            LOG.debug("error cleaning up table %s: %s", table, e)
@pytest.fixture
def s3_create_bucket(s3_client):