Service Account Permissions Issue: Vault Access Restricted to Read-Only

Hi all,
I'm having trouble with the permissions of the service account. Even though I grant it read, write and share permissions on a vault when creating the
service account, the account is actually created with read-only permissions.
This is evident both from the attached image and from the code I am running (Python SDK) which can access the vault for reading, but not for writing.
The error I am getting is: you do not have the right permissions to perform this action: not sufficient permissions for the item update operation
I also tried to create the service account again with all the necessary permissions, but the problem persists, even though I grant it permission to create vaults.
I have no idea what it could be or what else I could try.
Thanks