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Worked with quickstart template "7 - Serverless API" from "sam init" and observed that the template needs to be specified with absolute path while specifying handlers as below to get all the files to the Lambda environment
getByIdFunction: Type: AWS::Serverless::Function Properties: Handler: src/handlers/get-by-id.getByIdHandler Runtime: nodejs18.x Architectures: - x86_64
Feel free to reach out on the support case with any further concerns and we will be happy to review template and architecture to the best of our knowledge.
