Failed to launch instance in pool

Summary

Failed to launch instance in pool because the defined tags could not be operated on. For a workaround, see https://docs.cloud.oracle.com/iaas/Content/knownissues.htm#tagpropagation

Content

I got this error while creating an Instance Pool.  It appears to be a known issue and a workaround is listed.
The workaround is to create a policy to allow the service compute_management to work on the tag. e.g.
                    Allow service compute_management to use tag-namespace in tenancy

I created the policy, but not sure if I need to attach this policy to a Dynamic Group or to any other group.