MySQL User Creation

I hope I have this in the right forum but I am running into issues with users that are created in the process. On my AWS instance I have VM set up to configure the AWS-RDS instance of MySQL.

When I create a new virtual server, it creates the user and the database as expected but does not give the user any permissions so it cannot install WordPress without first delting the localhost user since it's not needed and setting the permissions.

Now, in the bottom in the User Permissions section, I have all 3 checkboxes checked and I set a number of default permissions. I wonder if I am misinterpreting this but isn't that supposed to set the default permissions to set when creating a new user?

So, when I create a new virtual server, I have to delete the second user (VM creates one on localhost and one for Any host) and then set the permissions then go back and try the WordPress installation.

Am I missing something?