I am able to reproduce this without involving session authorization guc as well. One needs to drop the newly created role from another session, then also we can see the same error.
Yeah, that's how I first created the case. But concurrent dropping of role (which is surprisingly allowed even when there are active connections with the role active) opens another set of errors. Hence I tried to reproduce this in a single session. While it might be interesting to fix the concurrent role drop problem someday, the single session problem looks more pressing.
