"child policies must be subset of parent" when creating a new token

It seems I have solved the issue.

Referring to this post:

I have added sudo to the parent policy:

path "auth/token/create" {
  capabilities = ["sudo","create", "update"]
}

And using -no-default-policy -orphan in token create:

vault token create -no-default-policy -orphan -policy=${REPO_NAME} -format=json