### 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_
import logging
import os
from typing import TYPE_CHECKING, List
import boto3
import botocore.config
import pytest
from localstack.utils.aws import aws_stack
from localstack.utils.aws.aws_stack import create_dynamodb_table
from localstack.utils.common import is_alpine, short_uid
if TYPE_CHECKING:
    from mypy_boto3_apigateway import APIGatewayClient
    from mypy_boto3_cloudformation import CloudFormationClient
    from mypy_boto3_dynamodb import DynamoDBClient
    from mypy_boto3_events import EventBridgeClient
    from mypy_boto3_iam import IAMClient
    from mypy_boto3_kinesis import KinesisClient
    from mypy_boto3_lambda import LambdaClient
    from mypy_boto3_logs import CloudWatchLogsClient
    from mypy_boto3_s3 import S3Client
    from mypy_boto3_secretsmanager import SecretsManagerClient
    from mypy_boto3_sns import SNSClient
    from mypy_boto3_sqs import SQSClient
    from mypy_boto3_ssm import SSMClient
    from mypy_boto3_stepfunctions import SFNClient
LOG = logging.getLogger(__name__)
def _client(service):