I suppose that the 1st thing you need to re-check is the custom post type capabilities:
How did you define ‘news’ custom post type capabilities?
Generally if you define ‘video’ custom post type for example, capabilities will be ‘create_videos’, ‘edit_videos’.
What will be for ‘news’ custom post type. Are there ‘create_newss’, ‘edit_newss’?
Then ‘create_news’ in a role will not work as ‘create_newss’ will be required.
2nd, did you set any restrictions with “Admin Menu Access” add-on for this role?
