I created an instance configuration on Oracle Cloud based on FreeBSD-14.2-RELEASE-arm64-ufs image (could have been any other FreeBSD).
When launching an instance from this configuration, I got:
Error returned by LaunchInstance operation in Compute service.(404, NotAuthorizedOrNotFound, false) Authorization failed or requested resource not found.
The likely problem is some value is missing in the instance configuration, and therefore the create instance request. The tricky part is this: instance configurations will not double check what you have entered, and will let you save without complaining. It is only when you attempt to actually create an instance from the configuration it will really try it, and the errors may show up.
From my experience on different occasions, the missing values were:
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VNIC display name. In the instance form, under Primary VNIC information → VNIC name (Optional) make sure you have one. It says "optional", but that's likely OCI form not recognizing actual OS image requirements.
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DNS record. In the instance form, under Networking, expand Advanced options. Under DNS record, you will have Assign a private DNS record selected by default. Problem is, it then expects a Hostname, which is by default empty. Remember to either enter the Hostname, or choose Do not assign a private DNS record.
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Anything else? If you checked the above and it still doesn't work, look for value(s) that you're leaving empty when creating the Instance Configuration.
How to debug: try to create an instance manually, not through a configuration. You will now get a different error that will point to what the problem is, for example:
createVnicDetails.displayName size must be between 1 and 255
Additional resources: