I just started using Next.js. I've built a really simple project and it works fine with next dev but I am trying to use Vercel Serverless Functions, so I installed Vercel CLI. The way I installed was:

npm i -g pnpm
pnpm setup
pnpm i -g vercel@latest

Currently it's a very basic project

❯ ls -lah
total 320
drwxr-xr-x   18 jbanasik  staff   576B Jun 24 11:14 .
drwxr-xr-x   52 jbanasik  staff   1.6K Jun 24 09:17 ..
-rw-r--r--    1 jbanasik  staff    40B Jun 24 09:17 .eslintrc.json
drwxr-xr-x   12 jbanasik  staff   384B Jun 24 09:25 .git
-rw-r--r--    1 jbanasik  staff   368B Jun 24 09:17 .gitignore
drwxr-xr-x   11 jbanasik  staff   352B Jun 24 11:08 .next
drwxr-xr-x    4 jbanasik  staff   128B Jun 24 11:14 .vercel
-rw-r--r--    1 jbanasik  staff   1.3K Jun 24 09:17 README.md
drwxr-xr-x    3 jbanasik  staff    96B Jun 24 10:34 api
drwxr-xr-x    9 jbanasik  staff   288B Jun 24 10:58 app
-rw-r--r--    1 jbanasik  staff   377B Jun 24 11:04 middleware.ts
-rw-r--r--    1 jbanasik  staff   201B Jun 24 09:17 next-env.d.ts
-rw-r--r--    1 jbanasik  staff    92B Jun 24 09:17 next.config.js
drwxr-xr-x  256 jbanasik  staff   8.0K Jun 24 09:21 node_modules
-rw-r--r--    1 jbanasik  staff   128K Jun 24 09:21 package-lock.json
-rw-r--r--    1 jbanasik  staff   468B Jun 24 09:21 package.json
drwxr-xr-x    4 jbanasik  staff   128B Jun 24 09:17 public
-rw-r--r--    1 jbanasik  staff   638B Jun 24 09:17 tsconfig.json

only file in api:

❯ cat api/authorized.ts
import { NextApiRequest, NextApiResponse } from 'next';

export default async function handler(request: NextApiRequest, response: NextApiResponse) {
    response.status(200).send('')
}%

folder structure:

❯ ls -lah app
total 88
drwxr-xr-x   9 jbanasik  staff   288B Jun 24 10:58 .
drwxr-xr-x  18 jbanasik  staff   576B Jun 24 11:14 ..
drwxr-xr-x   8 jbanasik  staff   256B Jun 24 10:57 admin
-rw-r--r--   1 jbanasik  staff    25K Jun 24 09:17 favicon.ico
-rw-r--r--   1 jbanasik  staff   2.2K Jun 24 09:17 globals.css
-rw-r--r--   1 jbanasik  staff   459B Jun 24 10:49 layout.tsx
drwxr-xr-x   3 jbanasik  staff    96B Jun 24 10:57 login
-rw-r--r--   1 jbanasik  staff   3.8K Jun 24 09:17 page.module.css
-rw-r--r--   1 jbanasik  staff    77B Jun 24 09:39 page.tsx
❯ ls -lah app/admin/
total 16
drwxr-xr-x  8 jbanasik  staff   256B Jun 24 10:57 .
drwxr-xr-x  9 jbanasik  staff   288B Jun 24 10:58 ..
drwxr-xr-x  2 jbanasik  staff    64B Jun 24 09:33 account-settings
drwxr-xr-x  2 jbanasik  staff    64B Jun 24 09:33 content-manager
drwxr-xr-x  3 jbanasik  staff    96B Jun 24 10:13 dashboard
-rw-r--r--  1 jbanasik  staff   225B Jun 24 10:13 layout.tsx
-rw-r--r--  1 jbanasik  staff   129B Jun 24 10:31 page.tsx
drwxr-xr-x  2 jbanasik  staff    64B Jun 24 09:32 site-settings
❯ ls -lah app/admin/*
-rw-r--r--  1 jbanasik  staff   225B Jun 24 10:13 app/admin/layout.tsx
-rw-r--r--  1 jbanasik  staff   129B Jun 24 10:31 app/admin/page.tsx

app/admin/account-settings:
total 0
drwxr-xr-x  2 jbanasik  staff    64B Jun 24 09:33 .
drwxr-xr-x  8 jbanasik  staff   256B Jun 24 10:57 ..

app/admin/content-manager:
total 0
drwxr-xr-x  2 jbanasik  staff    64B Jun 24 09:33 .
drwxr-xr-x  8 jbanasik  staff   256B Jun 24 10:57 ..

app/admin/dashboard:
total 8
drwxr-xr-x  3 jbanasik  staff    96B Jun 24 10:13 .
drwxr-xr-x  8 jbanasik  staff   256B Jun 24 10:57 ..
-rw-r--r--  1 jbanasik  staff    87B Jun 24 10:13 page.tsx

app/admin/site-settings:
total 0
drwxr-xr-x  2 jbanasik  staff    64B Jun 24 09:32 .
drwxr-xr-x  8 jbanasik  staff   256B Jun 24 10:57 ..
❯ ls -lah app/login
total 8
drwxr-xr-x  3 jbanasik  staff    96B Jun 24 10:57 .
drwxr-xr-x  9 jbanasik  staff   288B Jun 24 10:58 ..
-rw-r--r--  1 jbanasik  staff   101B Jun 24 10:57 page.tsx

I've only set up routes and put <div> with short strings in them.

When I run vercel dev even with export NODE_OPTIONS=--max_old_space_size=16384 will hit this error:

FATAL ERROR: Reached heap limit Allocation failed - JavaScript heap out of memory