That is what I am using. Taking the example of the documentation what I do first is:

1- Create a service principal in the workspace

2- Add the service principal as a user in lakebase, using service principals Application ID

SELECT databricks_create_role('8c01cfb1-62c9-4a09-88a8-e195f4b01b08', 'SERVICE_PRINCIPAL');

3- I get the mentioned error at the first step of giving permissions in the SQL editor:

-- Allow authenticator to assume the identity of the user
GRANT "8c01cfb1-62c9-4a09-88a8-e195f4b01b08" TO authenticator;

ERROR: permission denied to grant role "8c01cfb1-62c9-4a09-88a8-e195f4b01b08" (SQLSTATE 42501)