500 Internal Server Error on "CDN Diffing Files"

Hi, @toxsick. This stands out to me as a likely red flag hinting at the root cause:

Before that it is uploading the graphql function for round about 4 minutes.

Netlify Functions are built on-top of AWS Lambda. The fact that the upload of the function takes 4 minutes implies that it is a large bundle. Would you please confirm the size of the zip file bundle for that function?

If it is over 50 MB as a compress archive file (a zip file), then it is exceeding the limits of the underlying technology - AWS Lambda. The limits for Lambda are documented here:

Quoting that page:

| Deployment package | size 50 MB (zipped, for direct upload) |

If the zip file is smaller than that please let us know. If it is larger, something will need to be changed for it to meet the requirements for the zip file size.