webapps-deploy: Failed to deploy web package to App Service using ZIP Deploy

I have encountered an error while using the azure/webapps-deploy@v2

beta-deploy.yaml:

name: Develop - Build and deploy to Azure Web App 

on:
  push:
    branches: ["develop"]
  workflow_dispatch:
    
jobs:
  build:
    runs-on: windows-latest

    steps:
      - uses: actions/checkout@v2
      - uses: actions/setup-node@v3
        with:
          node-version: 16
      - name: Set up .NET Core
        uses: actions/setup-dotnet@v1
        with:
          dotnet-version: '6.0.x'
          include-prerelease: true

      - name: Install npm
        run: |
          cd src/Web/
          npm install
      - name: Build WEB
        run: dotnet build ./src/Web --configuration Debug

      - name: Upload artifact for deployment job WEB
        uses: actions/upload-artifact@v2
        with:
          name: .net-app-web
          path: ${{env.DOTNET_ROOT}}/web

      - name: Publish API
        run: dotnet publish  ./src/PublicApi/ -c Release -o ${{env.DOTNET_ROOT}}/api

      - name: Upload artifact for deployment job API
        uses: actions/upload-artifact@v2
        with:
          name: .net-app-api
          path: ${{env.DOTNET_ROOT}}/api
    
  deploy:
    runs-on: windows-latest
    needs: build
    environment:
      name: 'Production'
      url: ${{ steps.deploy-to-webapp.outputs.webapp-url }}

    steps:
      - name: Download artifact from build job - WEB
        uses: actions/download-artifact@v2
        with:
          name: .net-app-web

      - name: Deploy to Azure Web App
        id: deploy-to-webapp-web
        uses: azure/webapps-deploy@v2
        with:
          app-name: 'webapp-XXXXXXXXX'
          slot-name: 'Production'
          publish-profile: ${{ secrets.AZUREAPPSERVICE_PUBLISHPROFILE_DEF5E7EC3B4649958EFAF575DDB49C91 }}
          package: .
          

And the main issue happens in the deploy part where once the build is complete and it tries to do the deploy the output looks like this

Output

Using the following command to generate deployment script: 'azure site deploymentscript -y --no-dot-deployment -r "C:\local\Temp\zipdeploy\extracted" -o "C:\home\site\deployments\tools" --basic --sitePath "C:\local\Temp\zipdeploy\extracted"'.
C:\PROGRA~2\SITEEX~1\NODEAP~1\296456~1.8\nodejs\build\src\Loader.js:153
                ...StatusLogger.DEFAULT_STATUS,
                ^^^

SyntaxError: Unexpected token ...
    at createScript (vm.js:56:10)
    at Object.runInThisContext (vm.js:97:10)
    at Module._compile (module.js:542:28)
    at Object.Module._extensions..js (module.js:579:10)
    at Module.load (module.js:487:32)
    at tryModuleLoad (module.js:446:[12](https://github.com/vacha/nanosun-systems/actions/runs/4701623399/jobs/8338345568#step:3:13))
    at Function.Module._load (module.js:438:3)
    at Module.require (module.js:497:17)
    at module.js:669:12
    at Array.forEach (native)
C:\PROGRA~2\SITEEX~1\NODEAP~1\296456~1.8\nodejs\build\src\Loader.js:[15](https://github.com/vacha/nanosun-systems/actions/runs/4701623399/jobs/8338345568#step:3:16)3\r\n                ...StatusLogger.DEFAULT_STATUS,\r\n                ^^^\r\n\r\nSyntaxError: Unexpected token ...\r\n    at createScript (vm.js:56:10)\r\n    at Object.runInThisContext (vm.js:97:10)\r\n    at Module._compile (module.js:542:28)\r\n    at Object.Module._extensions..js (module.js:579:10)\r\n    at Module.load (module.js:487:32)\r\n    at tryModuleLoad (module.js:446:12)\r\n    at Function.Module._load (module.js:438:3)\r\n    at Module.require (module.js:497:[17](https://github.com/vacha/nanosun-systems/actions/runs/4701623399/jobs/8338345568#step:3:18))\r\n    at module.js:669:12\r\n    at Array.forEach (native)\r\nC:\Program Files (x86)\SiteExtensions\Kudu\100.50331.6[20](https://github.com/vacha/nanosun-systems/actions/runs/4701623399/jobs/8338345568#step:3:21)4\bin\Scripts\starter.cmd "C:\Program Files (x86)\SiteExtensions\Kudu\100.50331.6204\bin\node_modules\.bin\kuduscript.cmd" -y --no-dot-deployment -r "C:\local\Temp\zipdeploy\extracted" -o "C:\home\site\deployments\tools" --basic --sitePath "C:\local\Temp\zipdeploy\extracted"
Deployment Failed.
Error: Failed to deploy web package to App Service.
Error: Deployment Failed, Package deployment using ZIP Deploy failed. Refer logs for more details.

I have no idea what the cause is. If it is on the action part or if it is on our side. Am I missing something?