Functions failing to deploy despite local bundle being smaller than 50mb

That’s unlikely. We’ve received multiple such requests this week, but all of those has touched the 50 MB mark:

https://answers.netlify.com/t/cannot-deploy-site-due-to-too-large-function-node-v16-12/46022

I’d be tempted to test your project locally and try to reproduce the issue. Could you share your repo?