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Serverless function creation fails with "Authorization failed or requested resource not found"

AspireJul 11 2021 — edited Jul 12 2021

I'm trying to upload a Python function from cli of an instance principal into a new created application of a compartment. It works fine for another application in a different compartment. I've compared the policies assigned to these compartments and they are exactly same. The dynamic group of instance principals has been given the following accesses in the policies:
Allow dynamic-group prod-developer read instance-family in compartment nonprod
Allow dynamic-group prod-developer to manage repos in compartment nonprod
Allow dynamic-group prod-developer to manage functions-family in compartment nonprod
Allow dynamic-group prod-developer to read secrets in compartment nonprod
I get the following error when I try to upload the image to the container repo.
============================
fn -v deploy --app dev-auth
Fn: Service error:NotAuthorizedOrNotFound. Authorization failed or requested resource not found.. http status code: 404. Opc request id: ffd1423a96612424219ed0728f5f9bf0/BC90FFC8C52C262AA3CAD087C5F843DF/3BDC4CFDACA0750C9F442E987C4017EB
============================
I've also made sure this application has been assigned the subnets exactly same as the other other application which is working.
I get the same error even if I try to list the applications in that compartment. So access to compartment itself seems to be restricted currently.
"fn list apps"
Is there a way to trace/troubleshoot what access to which resource is missing?

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Added on Jul 11 2021
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