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AWS requires CloudFront‑specific account verification before you can create distributions. Updating your payment method alone does not clear the hold but you must wait for AWS Support to complete the verification review.

Yes, thank you, I (re)posted here to get some traction or even better help. It seems the AWS support is non-existent, this is blocking ticket, for me, with no feedback for over a week. I wish people would be even remotely attentive there as you were here.