nuxt: Deploys to netlify break after upgrading to 3.6.x

Environment

• Operating System: Linux
• Node Version: v18.16.1
• Nuxt Version: 3.6.5
• Nitro Version: 2.5.2
• Package Manager: npm@9.5.1
• Builder: vite
• User Config: components, modules, colorMode, googleFonts, build, typescript, vite
• Runtime Modules: @nuxt/content@2.7.1, @nuxtjs/tailwindcss@6.8.0, @nuxtjs/google-fonts@3.0.1, @nuxt/image-edge@1.0.0-rc.1-28164352.ad7c010, @pinia/nuxt@0.4.11, @nuxtjs/color-mode@3.3.0
• Build Modules: -

Reproduction

Repo with cleaned up branch

Branch cleanup is as far as I could make it while still reproducing the issue.

Describe the bug

When upgrading from Nuxt 3.5.3 to Nuxt 3.6.5 (also tested with 3.6.3 before), netlify deploys break,showing an error message.

9:47:02 PM: Functions bundling                                            
9:47:02 PM: ────────────────────────────────────────────────────────────────
9:47:02 PM: ​
9:47:02 PM: Packaging Functions from .netlify/functions-internal directory:
9:47:02 PM:  - server/server.mjs
9:47:02 PM: ​
9:47:02 PM: Packaging Functions from functions/api directory:
9:47:02 PM:  - login.ts
9:47:02 PM:  - verifylogin.ts
9:47:02 PM: ​
9:47:21 PM: <--- Last few GCs --->
9:47:21 PM: [4031:0x6145730]    42000 ms: Scavenge 2025.0 (2059.0) -> 2025.0 (2064.2) MB, 4.3 / 0.0 ms  (average mu = 0.149, current mu = 0.144) allocation failure;
9:47:21 PM: [4031:0x6145730]    42006 ms: Scavenge 2027.8 (2064.2) -> 2028.0 (2065.5) MB, 4.3 / 0.0 ms  (average mu = 0.149, current mu = 0.144) allocation failure;
9:47:21 PM: [4031:0x6145730]    42012 ms: Scavenge 2028.8 (2065.5) -> 2028.5 (2076.5) MB, 5.1 / 0.0 ms  (average mu = 0.149, current mu = 0.144) allocation failure;
9:47:21 PM: <--- JS stacktrace --->
9:47:21 PM: FATAL ERROR: Ineffective mark-compacts near heap limit Allocation failed - JavaScript heap out of memory
9:47:21 PM:  1: 0xb83f50 node::Abort() [/opt/buildhome/node-deps/node]
9:47:21 PM:  2: 0xa94834  [/opt/buildhome/node-deps/node]
9:47:21 PM:  3: 0xd647c0 v8::Utils::ReportOOMFailure(v8::internal::Isolate*, char const*, bool) [/opt/buildhome/node-deps/node]
9:47:21 PM:  4: 0xd64b67 v8::internal::V8::FatalProcessOutOfMemory(v8::internal::Isolate*, char const*, bool) [/opt/buildhome/node-deps/node]
9:47:21 PM:  5: 0xf42265  [/opt/buildhome/node-deps/node]
9:47:21 PM:  6: 0xf43168 v8::internal::Heap::RecomputeLimits(v8::internal::GarbageCollector) [/opt/buildhome/node-deps/node]
9:47:21 PM:  7: 0xf53673  [/opt/buildhome/node-deps/node]
9:47:21 PM:  8: 0xf544e8 
...

Additional context

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Logs

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