HIVE_UNKNOWN_ERROR: Error creating an instance of com.facebook.presto.hive.lakeformation.CachingLakeFormationCredentialsProvider
Contacted AWS support. Turns out the problem was that I had "-" and "." in my Athena database name. According to Athena documentation:
"The only acceptable characters for database names, table names, and column names are lowercase letters, numbers, and the underscore character." (https://docs.aws.amazon.com/athena/latest/ug/glue-best-practices.html#schema-names)
For some reason this was not a problem when we were working outside the Lake Formation, but as soon as we registered the S3 location in LF, it started failing. I have confirmed that removing those characters from the database name solves the problem.