API gateway - message "select an integration response." when creating stack using cloudformation

Just add this inside Integration :

"IntegrationResponses": [{ 
 "ResponseParameters":{
                "method.response.header.Access-Control-Allow-Origin": "'*'"
              },  
  "StatusCode" : "200"
}]

This below block

"MethodResponses":[
            {
              "ResponseModels" : {"application/json" : "Empty"},
              "ResponseParameters":{
                "method.response.header.Access-Control-Allow-Origin": "'*'"
              },
              "StatusCode" : "200"
            },
            {
              "StatusCode": "500"
            }
          ],

is set for method response level. You are looking at lambda means integration response level. For that you have to set IntegrationResponses.

Full template :

{
    "AWSTemplateFormatVersion": "2010-09-09",
    
    "Resources": {
      "HelloWorldApi": {
        "Type": "AWS::ApiGateway::RestApi",
        "Properties": {
          "Name": "hello-api",
          "Description": "API used for practice",
          "FailOnWarnings": true
        }
      },
      "getBannerMethod": {
        "Type": "AWS::ApiGateway::Method",
        "DependsOn": ["HelloWorldApi"],
        "Properties": {
          "RestApiId": {
            "Ref": "HelloWorldApi"
          },
          "ResourceId": {
            "Ref": "BannerResource"
          },
          "HttpMethod": "GET",
          "MethodResponses":[
            {
              "ResponseModels" : {"application/json" : "Empty"},
              "ResponseParameters":{
                "method.response.header.Access-Control-Allow-Origin": "'*'"
              },
              "StatusCode" : "200"
            },
            {
              "StatusCode": "500"
            }
          ],
          "AuthorizationType": "NONE",
          "Integration": {
            "Credentials": {
              "Fn::ImportValue": {
                "Fn::Sub": "${RolesStack}-ApiGatewayRoleArn"
              }
            },
            "IntegrationHttpMethod": "POST",
            "IntegrationResponses": [{ 
               "ResponseParameters":{
                "method.response.header.Access-Control-Allow-Origin": "'*'"
                },  
              "StatusCode" : "200"
            }],
            "Type": "AWS_PROXY",
            "Uri": {
              "Fn::Join": ["",
                [
                  "arn:aws:apigateway:",
                  {
                    "Ref": "AWS::Region"
                  },
                  ":lambda:path/2015-03-31/functions/",
                  {
                    "Fn::GetAtt": ["getBannerHandler", "Arn"]
                  },
                  "/invocations"
                ]
              ]
            }
          }
        }
      }
    }
  }

For those looking for the quick hack workaround to get it working from the console (like me).

I found the answer here: https://github.com/hashicorp/terraform-provider-aws/issues/11561

The only way to fix this issue is to login to the AWS Console and the do the following:

Go to "Integration request" and then uncheck "Use Lambda Proxy integration" and then check it again.

After performing the above steps the Method response correctly shows the mapped model.