bug: Security Groups created via Cloudformation template do not have the tags specified in the template

[anelson]

Is there an existing issue for this?

• I have searched the existing issues

Current Behavior

Deploying a Cloudformation template which specifies a security group with one or more tags successfully creates that security group, but the tags are missing. Adding the tags to the security group manually after the template is deployed works as expected.

Expected Behavior

Tags on all resources in a Cloudformation template should be created on those resources automatically as part of the deployment of that template. I deployed this same template on an actual AWS account and the tags were present as expected.

How are you starting LocalStack?

With the localstack script

Steps To Reproduce

How are you starting localstack (e.g., bin/localstack command, arguments, or docker-compose.yml)

localstack --debug start

Client commands (e.g., AWS SDK code snippet, or sequence of "awslocal" commands)

# Download the example CFN that reproduces this behavior
curl https://gist.githubusercontent.com/anelson/4e5af3f511e8429a3b06b1c9d4294f71/raw/eae7bca475642608b694b756e7c5c08244803537/cfn.yaml -o cfn.yaml

# Deploy the CFN to localstack
awslocal cloudformation create-stack --stack-name farcast --template-body "$(cat cfn.yaml)"

# Wait a few seconds for the deploy to complete.

# Describe the security groups; note that the security group `FarcastDefaultComputeB5C4A6CA` has no tags
awslocal ec2 describe-security-groups

Environment

- OS: Fedora 39
- LocalStack: 3.4.0

Anything else?

I made a gist with a CFN that reproduces this behavior:

https://gist.github.com/anelson/4e5af3f511e8429a3b06b1c9d4294f71

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