Coming to this thread a bit later with the same issue. I was trying to update terraform to version 1.7.3. I did not have the profile set in the provider block, but I did have it in the ‘backend’ block. Removing it from there as well fixed the issue for me.
Interestingly, the backend was set up successfully at the start of terraform init, so this didn’t seem to be the issue. But debugging the output of the init showed that all the modules were successfully set up. 