Red Hat OpenShift Container Platform Machine Failed with error launching instance: You are not authorized to perform this operation

Issue

• The Machine creation is stuck in Failed phase with Error Message: error launching instance: You are not authorized to perform this operation (without an encoded error message when running the cluster using service endpoints)

$ oc describe machines -n openshift-machine-api ${MACHINE_NAME} |grep 'Error Message:'
  Error Message:           error launching instance: You are not authorized to perform this operation.

• The Machine creation is stuck in Failed phase with Error Message: error launching instance: You are not authorized to perform this operation (with an encoded error message)

$ ENCODED_ERROR_MESSAGE=$(oc describe machines -n openshift-machine-api ${MACHINE_NAME} |grep 'Error Message:' | awk -F'failure message: ' '{print$2}')
$ oc describe machines -n openshift-machine-api ${MACHINE_NAME} |grep 'Error Message:'
  Error Message:           error launching instance: You are not authorized to perform this operation. Encoded authorization failure message: ${ENCODED_ERROR_MESSAGE}

• The decoded error message shows that the permissions used by Machine API are not allowed to run the action ec2:RunInstances