When deploying a CloudFormation stack that defines IAM resources with explicit (custom) names, stack creation fails with an InsufficientCapabilities error. What must you specify to allow CloudFormation to create IAM resources that use specified names?
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Correct answer: Specify the CAPABILITY_NAMED_IAM capability for the CloudFormation stack..
Why this is the answer
When a CloudFormation stack includes IAM resources with custom names, you must explicitly acknowledge CloudFormation's ability to create these resources by specifying the CAPABILITYNAMEDIAM capability. This is a security measure, as named IAM resources can potentially be reused or referenced outside the stack, and CloudFormation requires your explicit consent for such actions. Without this capability, CloudFormation will return an InsufficientCapabilities error. CAPABILITYIAM is used for IAM resources without custom names. CAPABILITYAUTOEXPAND is for transform-based templates. Deploying with an administrator role does not bypass the need for capability acknowledgment; it only ensures the role has the necessary permissions.
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