What was changed in upbound / provider-aws between 0.40 and 0.46.1

Question

I'm playing with crossplane with Localstack. All worked fine if I'm just following Localstack guide, but when I'm trying to upgrade provider version to 0.46.1 and create a bucket, I got observe failed: failed to observe the resource: [{0 reading Amazon S3 (Simple Storage) Bucket (crossplane-test-bucket): Forbidden: Forbidden\n\tstatus code: 403

I assume, crossplane is trying to use real STS in newer version

I tried to update provider:

cat <<EOF | kubectl apply -f -
apiVersion: pkg.crossplane.io/v1
kind: Provider
metadata:
  name: provider-aws-s3
spec:
  package: xpkg.upbound.io/upbound/provider-aws-s3:v0.40.0 -> 0.46.1
EOF

with provider config:

cat <<EOF | kubectl apply -f -
apiVersion: aws.upbound.io/v1beta1
kind: ProviderConfig
metadata:
  name: default
spec:
  credentials:
    source: Secret
    secretRef:
      name: localstack-aws-secret
      namespace: default
      key: creds
  endpoint:
    hostnameImmutable: true
    services: [iam, s3, sqs, sts]
    url:
      type: Static
      static: http://10.100.100.1:4566
  skip_credentials_validation: true
  skip_metadata_api_check: true
  skip_requesting_account_id: true
  s3_use_path_style: true
EOF

When I'm using provider-aws-s3:v0.40.0 all works as expected, but I got stacked when upgrading. Whether I expect all should work as expected after upgrade.

I'm using kind as local cluster (kind version 0.20.0) Localstack (version 3.0.2) latest crossplane (version 1.14.4)