This is not really a problem any longer.
What I was trying to do was create a site using Hugo Modules for my theme. When Netlify tried to build the site it failed every time. I then deleted my github repo and created a new one with the same name. I then created a new Hugo site with the same name but without adding any modules. I installed my theme “ANANKE” in the theme directory and now Netlify is able to build it correctly after I removed some files from the theme.
So, my opinion is DO NOT USE HUGO MODULES IF USING NETLIFY FOR BUILDS.
Hope this helps someone else with the same problem.