OCI CLI not working with Instance Principal Auth

OCI_CLI_AUTH=instance_principal
[opc@cloudnenamingvm ~]$ oci os object list --bucket-name cloudnetnamingDND

/home/opc/lib/oracle-cli/lib64/python3.6/site-packages/oci/_vendor/httpsig_cffi/sign.py:10: CryptographyDeprecationWarning: Python 3.6 is no longer supported by the Python core team. Therefore, support for it is deprecated in cryptography. The next release of cryptography (40.0) will be the last to support Python 3.6.
from cryptography.hazmat.backends import default_backend # noqa: F401
ServiceError:
{
"client_version": "Oracle-PythonSDK/2.99.1, Oracle-PythonCLI/3.25.4",
"code": "BucketNotFound",
"logging_tips": "Please run the OCI CLI command using --debug flag to find more debug information.",
"message": "Either the bucket named 'cloudnetnamingDND' does not exist in the namespace 'axmbu1eyltbl' or you are not authorized to access it",
"opc-request-id": "phx-1:0oGfeV3SHeyjG8IZVI_1GycoUtg-VgWxY38n_peiSVdgUaMSTk8__D5aXqPiv3d8",
"operation_name": "list_objects",
"request_endpoint": "GET https://objectstorage.us-phoenix-1.oraclecloud.com/n/axmbu1eyltbl/b/cloudnetnamingDND/o",
"status": 404,
"target_service": "object_storage",
"timestamp": "2023-06-01T06:47:10.851532+00:00",
"troubleshooting_tips": "See [https://docs.oracle.com/iaas/Content/API/References/apierrors.htm] for more information about resolving this error. If you are unable to resolve this issue, run this CLI command with --debug option and contact Oracle support and provide them the full error message."
}

When I am using config file, it works fine. Group has the user and dynamic group has the OCID of my VM. Same policy statements are given for both, yet config file works but instance principal method doesn’t .
Can someone help in debugging?

Start with the OCI CLI command shown in the report and rerun it with --debug, comparing instance principal authentication with the working config-file path. Review the reported BucketNotFound response, namespace, bucket, policies, and dynamic-group setup. Done means the same object-list operation works with instance principal authentication under the stated permissions.