Hi @rapanaki thanks for the post.
Since Netlify functions run in a serverless environment, trying to install bcrypt has to also install the native dependency node-gyp which might not install in a serverless environment.
An alternative will be to install and use bcryptjs
The bcryptjs package is an optimized bcrypt in JavaScript with zero dependencies
Make sure you remove the bcrypt package first and then install the bcryptjs package
npm uninstall bcrypt
npm install bcryptjs
Kindly make the changes and then let me know the outcome.
Thanks.