Locked out of ec2 instance after installing Docker on it

Question

After I created a clean instance with Ubuntu 20 or Amazon Linux AMI, I can log into the instance using SSH.

Then I do:

sudo apt update -y && apt upgrade -y on Ubuntu

or

sudo yum update -y on Amazon Linux

Still all goes fine and I can continue to connect to the instance via SSH.

Then I install docker, the pipe becomes broken in the middle of the installation and I cannot connect to the instance any more. The SSH times out.

This same behavior can be observed also with AMIs with preinstalled Docker on them. For example I tried to use the redash AMI, I couldn't connect to it after launch.