Faced the same issue when trying to update the "Trust Relationship" Or same known as "Trust Policy".
"Principal" comes to play only in "Trust Policy". May be by mistake you are updating normal policy falling under the permissions tab. Try updating the policy under "Trust Relationships" tab as below:
{
"Version": "2012-10-17",
"Statement": [
{
"Effect": "Allow",
"Principal": {
"Service": [
"ec2.amazonaws.com",
"lambda.amazonaws.com"
]
},
"Action": "sts:AssumeRole"
}
]
}
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