We should use another way to create user and grant privileges to the newly created user step by step;

The key located at the first step when you create the user,please use  'IDENTIFIED  WITH mysql_native_password' 

First create the new user 

CREATE USER 'fred2'@'localhost' IDENTIFIED WITH mysql_native_password BY '{NewPassword}';

Second show all privileges to the created user

GRANT ALL ON *.* TO 'fred2'@'localhost';

Third to validate the granted privileges on the created user;

select * from mysql.user where user ='fred2';

select * from mysql.user where user ='fred2';
+-----------+-------+-------------+-------------+-------------+-------------+-------------+-----------+-------------+---------------+--------------+-----------+------------+-----------------+------------+------------+--------------+------------+-----------------------+------------------+--------------+-----------------+------------------+------------------+----------------+---------------------+--------------------+------------------+------------+--------------+------------------------+----------+------------------------+--------------------------+----------------------------+---------------+-------------+-----------------+----------------------+-----------------------+-------------------------------------------+------------------+-----------------------+-------------------+----------------+------------------+----------------+------------------------+---------------------+--------------------------+-----------------+
| Host      | User  | Select_priv | Insert_priv | Update_priv | Delete_priv | Create_priv | Drop_priv | Reload_priv | Shutdown_priv | Process_priv | File_priv | Grant_priv | References_priv | Index_priv | Alter_priv | Show_db_priv | Super_priv | Create_tmp_table_priv | Lock_tables_priv | Execute_priv | Repl_slave_priv | Repl_client_priv | Create_view_priv | Show_view_priv | Create_routine_priv | Alter_routine_priv | Create_user_priv | Event_priv | Trigger_priv | Create_tablespace_priv | ssl_type | ssl_cipher             | x509_issuer              | x509_subject               | max_questions | max_updates | max_connections | max_user_connections | plugin                | authentication_string                     | password_expired | password_last_changed | password_lifetime | account_locked | Create_role_priv | Drop_role_priv | Password_reuse_history | Password_reuse_time | Password_require_current | User_attributes |
+-----------+-------+-------------+-------------+-------------+-------------+-------------+-----------+-------------+---------------+--------------+-----------+------------+-----------------+------------+------------+--------------+------------+-----------------------+------------------+--------------+-----------------+------------------+------------------+----------------+---------------------+--------------------+------------------+------------+--------------+------------------------+----------+------------------------+--------------------------+----------------------------+---------------+-------------+-----------------+----------------------+-----------------------+-------------------------------------------+------------------+-----------------------+-------------------+----------------+------------------+----------------+------------------------+---------------------+--------------------------+-----------------+
| localhost | fred2 | Y           | Y           | Y           | Y           | Y           | Y         | Y           | Y             | Y            | Y         | N          | Y               | Y          | Y          | Y            | Y          | Y                     | Y                | Y            | Y               | Y                | Y                | Y              | Y                   | Y                  | Y                | Y          | Y            | Y                      |          | 0x                     | 0x                       | 0x                         |             0 |           0 |               0 |                    0 | mysql_native_password | *EF1677845E31791558343EB489C552374F57B4DB | N                | 2022-07-02 19:33:50   |              NULL | N              | Y                | Y              |                   NULL |                NULL | NULL                     | NULL            |
+-----------+-------+-------------+-------------+-------------+-------------+-------------+-----------+-------------+---------------+--------------+-----------+------------+-----------------+------------+------------+--------------+------------+-----------------------+------------------+--------------+-----------------+------------------+------------------+----------------+---------------------+--------------------+------------------+------------+--------------+------------------------+----------+------------------------+--------------------------+----------------------------+---------------+-------------+-----------------+----------------------+-----------------------+-------------------------------------------+------------------+-----------------------+-------------------+----------------+------------------+----------------+------------------------+---------------------+--------------------------+-----------------+
1 row in set (0.00 sec)

The old wisdom says that a picture is worth a thousand words.