Access denied error when creating a Document Library from a custom List Definition

I just ran into an issue that I’m pretty sure I also had about a year ago, but failed to write down then. I guess I’ll have to write it down this time. I’m creating a custom list definition and after I deployed the solution and instantiated the list I got an error saying “Access denied. You do not have permission to perform this action or access this resource.”, even though the permissions is set to inherit and I am the site owner and have full control.

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