What should the developer do to resolve this issue?
Specify the CAPABILITY_AUTO_EXPAND capability in the CloudFormation stack.
Use an administrators role to deploy IAM resources with CloudFormation.
Specify the CAPABILITY_IAM capability in the CloudFormation stack.
Specify the CAPABILITY_NAMED_IAM capability in the CloudFormation stack.
Explanations:
The CAPABILITY_AUTO_EXPAND capability is used for stacks that contain macros, which allow for more complex template processing. It does not address IAM resources with custom names, thus it will not resolve the InsufficientCapabilities error.
Using an administrator’s role does not resolve the InsufficientCapabilities error. This error is related to the specified capabilities required for the stack rather than the permissions of the role being used to deploy the stack.
The CAPABILITY_IAM capability allows the creation of IAM resources, but it does not account for the use of custom names. Therefore, it is insufficient on its own to resolve the InsufficientCapabilities error when custom-named IAM resources are included in the stack.
The CAPABILITY_NAMED_IAM capability is specifically designed for stacks that create IAM resources with custom names. By specifying this capability, the developer acknowledges that the stack will create IAM resources with user-defined names, thus resolving the InsufficientCapabilities error.
I suspect that the answer is:
Specify the CAPABILITY_NAMED_IAM capability in the CloudFormation stack.