The non-zero bits in the IP address after the masked bits are ignored. This may lead to development of IAM policies that do not follow standard CIDR notations.
In AWS Console -
In Terraform -
References:
https://docs.aws.amazon.com/IAM/latest/UserGuide/service_code_examples_iam.html
https://docs.aws.amazon.com/IAM/latest/UserGuide/reference_policies_condition-keys.html
https://registry.terraform.io/providers/hashicorp/aws/latest/docs/resources/iam_policy