And that is generally the AWS MO - the first version or 2 of most of their services are super basic but will provide capabilities for customers that don't already have that capability from another vendor. If it gets traction or other customers start to say "we'd use it if it had feature X" they'll start to build it out more.
AWS and Azure tend to be easy to work with, if you're dealing with anything with regulatory requirements. I have projects which can't go on github, hosted gitlab, or bitbucket. We host our own gitlab, but if we were doing this in 2022, we might use CodeCommit since AWS is qualified.
It makes sense too. Each vendor expands your security perimeter. This isn't just dumb bureaucracy (but that doesn't make it less annoying either).
The idea is that a huge - say - government organization has a set of requirements, and bidding organizations will create MVPs only functional enough so that the line items in the requirements can be checked off by the bid evaluator.