As mokugo-devops said in his answer, and you stated in your question, you could only use "get-policy-version" to get the proper JSON. Here is how I would do it:
RAW_POLICIES=$(aws iam list-policies --query Policies[].[Arn,PolicyName,DefaultVersionId])
POLICIES=$(echo $RAW_POLICIES | tr -d " " | sed 's/\],/\]\n/g')
for POLICY in $POLICIES
do echo $POLICY | cut -d '"' -f 4
echo -e "---------------\n"
aws iam get-policy-version --version-id $(echo $POLICY | cut -d '"' -f 6) --policy-arn $(echo $POLICY | cut -d '"' -f 2)
echo -e "\n-----------------\n"
done
Now a bit of explanation about the script:
RAW_POLICIES will get you a giant list of arrays that would each contain the name of the policy as requested and the Policy ARN, and Default Version ID as needed. It would however contain spaces that would make iterating over it directly in bash less comfortable (though not impossible for the sufficiently stubborn).
To make the upcoming loop more easy we will clean the spaces and then use sed to insert the spaces we will need. This is done in the 2nd line which defines the POLICIES variable.
This leaves us very little to do in the actual loop. Here we just print the Policy name, some pretty lines and invoke the function that you predicted will be the one used, get-policy-version.