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Thank you for bringing this to our attention. You are correct that the behavior you're experiencing is due to a service-specific restriction on the AppStream streaming endpoint.
Not all AWS services support custom endpoint policies. When an AWS service doesn't support endpoint policies, full access to the endpoint is allowed by default. In your case, the com.amazonaws.us-east-1.appstream.streaming service specifically requires the full-access endpoint policy and does not support custom policies, even if you're attempting to grant full access with a custom policy document.
To resolve your Terraform error, you should remove the policy parameter from your aws_vpc_endpoint.appstream_streaming resource. When you don't attach an endpoint policy, the default endpoint policy (which provides full access) will be automatically applied. This is the expected configuration for services that don't support custom endpoint policies.
Your aws_vpc_endpoint.appstream_api resource may support custom policies depending on the service's capabilities, but the streaming endpoint specifically does not.
I appreciate your feedback about the documentation. You're right that it would be helpful to have a clear table or reference that explicitly lists which AWS services support custom endpoint policies and which require the default full-access policy. The general guidance states that not all AWS services support endpoint policies, but service-specific restrictions like the one you encountered with AppStream streaming should be more clearly documented in the service-specific pages.
For your immediate needs, simply omit the policy parameter for the AppStream streaming endpoint, and it will work with the default full-access policy that the service requires.
Sources
Control access to VPC endpoints using endpoint policies - Amazon Virtual Private Cloud
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