Why does lovelace complain about this tap_action?

Other people have reported this same issue in the past:

Perhaps the Lovelace UI editor continues to be unable to handle this configuration because, based on comparisons with other examples, it appears to be correct.

You may have reached a level of complexity that requires you to change to Lovelace YAML mode whereupon you will be editing the configuration using a text editor and not via Home Assistant’s GUI.