can anybody tell me why the first version works and the second one doesn't?

def setup_s3_read_write_policy(buckets: List[pulumi.Output], project_name: str, instance_role: iam.Role):
    """
    Create a policy to access a list of buckets in R/W mode
    """
    def create_and_attach_policy(args: List) -> None:
        policy = json.dumps(
            {
                "Statement": [
                    {
                        "Effect": "Allow",
                        "Action": ["s3:ListBucket"],
                        "Resource": [f"arn:aws:s3:::{arg}" for arg in args],
                    },
                    {
                        "Effect": "Allow",
                        "Action": "s3:GetObject",
                        "Resource": [f"arn:aws:s3:::{arg}/*" for arg in args],
                    },
                ],
            }
        )
        S3_POLICY_NAME = create_unique_name(f'{project_name}-buckets-policy')
        s3_policy = iam.Policy(S3_POLICY_NAME, policy=policy)
        S3_ROLE_POLICY_ATTACHMENT = create_unique_name(
            f'{project_name}-buckets-role-policy-attachment'
        )
        iam.RolePolicyAttachment(
            S3_ROLE_POLICY_ATTACHMENT, role=instance_role, policy_arn=s3_policy.arn
        )
    pulumi.Output.all(*[bucket.id for bucket in buckets]).apply(
        lambda args: create_and_attach_policy(args)
    )

def setup_s3_read_write_policy(buckets: List[pulumi.Output], project_name: str, instance_role: iam.Role):
    """
    Create a policy to access a list of buckets in R/W mode
    """
    def create_and_attach_policy(args: List) -> None:
        policy = json.dumps(
            {
                "Statement": [
                    {
                        "Effect": "Allow",
                        "Action": ["s3:ListBucket"],
                        "Resource": [f"arn:aws:s3:::{arg.id}" for arg in args],
                    },
                    {
                        "Effect": "Allow",
                        "Action": "s3:GetObject",
                        "Resource": [f"arn:aws:s3:::{arg.id}/*" for arg in args],
                    },
                ],
            }
        )
        S3_POLICY_NAME = create_unique_name(f'{project_name}-buckets-policy')
        s3_policy = iam.Policy(S3_POLICY_NAME, policy=policy)
        S3_ROLE_POLICY_ATTACHMENT = create_unique_name(
            f'{project_name}-buckets-role-policy-attachment'
        )
        iam.RolePolicyAttachment(
            S3_ROLE_POLICY_ATTACHMENT, role=instance_role, policy_arn=s3_policy.arn
        )
    pulumi.Output.all(*[buckets]).apply(
        lambda args: create_and_attach_policy(args)
    )