Error when creating cedar template-linked policy using CloudFormation

Question

Why it is looking for Static policy definition? What's wrong with my definition of templatelinked policy

Terraform will perform the following actions:
  # aws_cloudformation_stack.policies will be created
  + resource "aws_cloudformation_stack" "policies" {
      + id            = (known after apply)
      + name          = "policies"
      + outputs       = (known after apply)
      + parameters    = (known after apply)
      + policy_body   = (known after apply)
      + tags_all      = {
          + "Application"            = "authorization"
          + "Client"                 = "client"
          + "DataClassification"     = "NoData"
          + "Env"                    = "env"
          + "EnvModifier"            = "none"
          + "Owner"                  = "owner"
          + "Product"                = "product"
          + "Schedule"               = "False"
          + "TaggingStandardVersion" = "3"
        }
      + template_body = jsonencode(
            {
              + Resources = {
                  + PolicyStore            = {
                      + Properties = {
                          + ValidationSettings = {
                              + Mode = "OFF"
                            }
                        }
                      + Type       = "AWS::VerifiedPermissions::PolicyStore"
                    }
                  + PolicyTemplate         = {
                      + Properties = {
                          + Description   = "Description"
                          + PolicyStoreId = {
                              + Ref = "PolicyStore"
                            }
                          + Statement     = <<-EOT
                                permit (
                                    principal == ?principal,
                                    action == ::Action::"view",
                                    resource == ?resource
                                );
                            EOT
                        }
                      + Type       = "AWS::VerifiedPermissions::PolicyTemplate"
                    }
                  + ParameterPolicyStoreId    = {
                      + Properties = {
                          + Description = "Description"
                          + Name        = "PolicyStoreId"
                          + Type        = "String"
                          + Value       = {
                              + Ref = "PolicyStore"
                            }
                        }
                      + Type       = "AWS::SSM::Parameter"
                    }
                  + ParameterPolicyTemplateId = {
                      + Properties = {
                          + Description = "Description"
                          + Name        = "PolicyTemplateId"
                          + Type        = "String"
                          + Value       = {
                              + Ref = "PolicyTemplate"
                            }
                        }
                      + Type       = "AWS::SSM::Parameter"
                    }
                  + policy1                   = {
                      + Properties = {
                          + Definition    = {
                              + TemplateLinked = {
                                  + PolicyTemplateId = {
                                      + Ref = "PolicyTemplate"
                                    }
                                }
                            }
                          + PolicyStoreId = {
                              + Ref = "PolicyStore"
                            }
                        }
                      + Type       = "AWS::VerifiedPermissions::Policy"
                    }
                }
            }
        )
    }

│ Error: waiting for CloudFormation Stack (arn:aws:cloudformation:ap-southeast-2:085913628776:stack/policies/5d60c3f0-edaa-11ee-967b-0a87241f8919) create: failed to create CloudFormation stack, rollback requested (ROLLBACK_COMPLETE): ["The following resource(s) failed to create: [ParameterPolicyTemplateId, policy1]. Rollback requested by user." "Resource creation cancelled" "Properties validation failed for resource policy1 with message:\n#/Definition: #: 0 subschemas matched instead of one\n#/Definition: required key [Static] not found\n#/Definition: extraneous key [TemplateLinked] is not permitted\n#/Definition/TemplateLinked/PolicyTemplateId: failed validation constraint for keyword [pattern]"] │ │ with aws_cloudformation_stack.amt_policies, │ on policies.tf line 43, in resource "aws_cloudformation_stack" "policies": │ 43: resource "aws_cloudformation_stack" "policies" { │ ╵ Error: The command exited with status 1 user command error: exit status 1