"Unable to add access as there are no default groups for JIRA" message does not tell you how to fix it

Summary

When granting users access to JIRA Application or when creating a User with JIRA access on Cloud, the following message is shown:
"Unable to add access as there are no default groups for JIRA. Please contact support."

The message suggests that there are no groups linked to the "JIRA Users" Global Permission but jira-users is linked correctly to that global permission.

Cause:
There are no JIRA use groups that do not have Admin permission

Environment: JIRA Cloud

Steps to Reproduce

1. Add jira-users to JIRA Administrators Global Permissions
2. verify jira-users it is listed in JIRA Users
3. Create a new user or grant a user Application Access

Expected Results: Error explaining that there are no default groups for JIRA, with a link to resolve it.

Actual Results: "Unable to add access as there are no default groups for JIRA. Please contact support." message is shown.

Notes:
There is no documentation on what 'default groups for JIRA' really is.

Workaround
Remove jira-users group from the JIRA Administrators global permission