MalformedPolicyDocument error while trying to create IAM user with policy permissions

Question

{
    "Version": "2012-10-17",
    "Statement": [
        {
            "Sid": "SrcBucket",
            "Effect": "Allow",
            "Action": "s3:*",
            "Resource": ["arn:aws:s3:::<s3-bucketname>"]
        }
    ]
}

I am using a script in ansible to create IAM user with the above policy permissions.

I can use the same policy document in aws console and create the policy, without any issue. But when I trying doing the same with the ansible script. I get the following Error.

    An exception occurred during task execution. To see the full traceback, use -vvv. The error was: botocore.errorfactory.MalformedPolicyDocumentException: An error occurred (MalformedPolicyDocument) when calling the PutUserPolicy operation: Syntax errors in policy.
[DEPRECATION WARNING]: The skip_duplicates behaviour has caused confusion and will be disabled by default in Ansible 2.14. This feature will be removed from community.aws in a release after 2022-06-01. Deprecation warnings can be disabled by setting 
deprecation_warnings=False in ansible.cfg.
fatal: [localhost]: FAILED! => changed=false 
  boto3_version: 1.18.18
  botocore_version: 1.21.18
  error:
    code: MalformedPolicyDocument
    message: Syntax errors in policy.
    type: Sender
  msg: 'An error occurred (MalformedPolicyDocument) when calling the PutUserPolicy operation: Syntax errors in policy.'
  response_metadata:
    http_headers:
      connection: close
      content-length: '279'
      content-type: text/xml
      date: Tue, 15 Feb 2022 16:38:04 GMT
      x-amzn-requestid: 1261725a-253d-4ddb-9452-66978bd88092
    http_status_code: 400
    request_id: 1261725a-253d-4ddb-9452-66978bd88092
    retry_attempts: 0

In fact I copied back the policy created on aws console to make sure this was not an issue with white spaces. I also validated the doc against a json validator. I have confirmed that the arn for the s3 bucket is the one I have listed in resource. That didn't seem to help. Any suggestions would be greatly appreciated. thanks