A lead source user must have at least one "Lead Contact" to be able to create leads or have leads assigned to the lead source. A lead source user can be an individual or representative of a group of people and a "Lead Contact" allows a larger buildout.
For example, if the lead source user is a bank branch, think of the lead source user account as the bank manager's user access, and "Lead Contacts" as bank employees who will refer business.
OR
Think of adding a lead form on a website, you could make a lead source user the representative of the website so you can track lead generation and automatically assign leads to designated sales users.
In either case, the lead source user will need to have a "Lead Contact" to add leads. This will be redundant in cases where there is only one user and one contact, but it must be done.
Add Lead Contact GIF
Go to the LEADS tab, select LEAD SOURCES, select the Lead Source you want to add the contact to, click ADD CONTACT, fill out the Add Contact form, and select SUBMIT to complete.