Issue Creation Failure - You do not have permission to modify the issue reporter

Problem

Issue creation fails when Create users is enabled and the Default Reporter does not have the Modify Reporter permission to be able to change the Reporter of the issue. 

Solution

The Default Reporter needs to be granted the Modify Reporter permission for the corresponding project. This is only applicable if you are creating users and the reporter needs to have the permission to be able to change the reporter to the new user once the new user is created.