It appears that there are different levels of permissions via API call than Custom Action. When I try to create a "New" child object via a Custom Action, It goes through just fine, but when I try the same creation via API call I receive an error telling me that the user "is not allowed to AddChild" to the program. If the user is an admin, they can do anything they want, but if they aren't it seems they can only add children to their own objects.
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Hello Ed,
I think it should work the same for both API and custom actions. It is recommended that both API user and Default Workflow User have Admin/Super/Financial permissions. This should prevent any issues you're currently having.
I hope this helps.
Roland