### 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("apigateway")
@pytest.fixture(scope="class")
def iam_client() -> "IAMClient":
    return _client("iam")
@pytest.fixture(scope="class")
def s3_client() -> "S3Client":
    return _client("s3")
@pytest.fixture(scope="class")
def sqs_client() -> "SQSClient":
    return _client("sqs")
@pytest.fixture(scope="class")
def sns_client() -> "SNSClient":
    return _client("sns")
@pytest.fixture(scope="class")
def cfn_client() -> "CloudFormationClient":
    return _client("cloudformation")
@pytest.fixture(scope="class")
def ssm_client() -> "SSMClient":
    return _client("ssm")
@pytest.fixture(scope="class")
def lambda_client() -> "LambdaClient":
    return _client("lambda")
@pytest.fixture(scope="class")
def kinesis_client() -> "KinesisClient":
    return _client("kinesis")
@pytest.fixture(scope="class")
def logs_client() -> "CloudWatchLogsClient":
    return _client("logs")
@pytest.fixture(scope="class")
def events_client() -> "EventBridgeClient":