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we have move some SQL Server from Physical to AWS EC2 - my question is regarding Max Memory Setting fro SQL Server instance - I used to change the memory setting in Physical server giving some to OS and some to SQL Server but I am not sure for EC2 - do we have to use the same logic like 10-12% to OS and rest to SQL server in AWS Ec2 or we can keep it default .

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If there is an OS you should leave some RAM for it. EC2 is just a VM, so whatever you usually do for VM also applies for EC2.

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If you are running on an instance that you manage the same rules would apply for memory as what you have been using on premises

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