API Gateway CORS Error

I am trying to test my Http API Gateway locally. I understand that when attempting request from localhost or any other domain, CORs has to be enabled. I am using SAM as my cloudformation framework to setup my API Gateway with Lambda integrations. Below you can see that I set my cors configuration and I also return headers within my Lambda. Despite doing those two things I still recieve a CORS error.

"blocked by CORS policy: Response to preflight request doesn't pass access control check: No 'Access-Control-Allow-Origin' header is present on the requested resource."

I check the preflight response headers and notice the header values I configured are missing. I also checked my Lambda triggers and noticed CORS configuration was set to No. However, when viewing my CORS settings in API Gateway I see my configuration values that I set in my cloudformation template.

Template & Lambda Code:

ChatxAPI:
    Type: AWS::Serverless::HttpApi
    Properties:
      StageName: !Ref Environment
      Auth:
        DefaultAuthorizer: JWTAuthorizer
      CorsConfiguration:
        AllowOrigins:
          - "https://*"
          - "http://localhost:5173/"
          - "http://localhost:3000/"
        AllowHeaders:
          - "*"
        AllowMethods:
          - OPTIONS
          - GET
          - POST
          - PUT
          - DELETE
        MaxAge: 8600
      AccessLogSettings:
        DestinationArn: !GetAtt AccessLogs.Arn
        Format: "RequestID: $context.requestId | IntegrationError: $context.integrationErrorMessage | Full Context: $context"

Lambda Code:

const tokenInfo: OauthTokenResponse = await signTokenResponse.json()
const body = { tokenInfo }

return {
      statusCode: 200,
      headers: {
           "Content-Type": "application/json",
           "Access-Control-Allow-Origin": "*",
           "Access-Control-Allow-Methods": "OPTIONS,POST,GET,PUT,DELETE"
       },
       body: JSON.stringify({ data: body }),
}