Adding organization and app in serverless.ts breaks the application - amazon-web-services

Question

i am experiencing very strange behaviour with my serverless application,
here is my serverless.ts file
import type { AWS } from '#serverless/typescript';
import {
hello,
} from '#functions';
const serverlessConfiguration: AWS = {
service: 'users',
frameworkVersion: '2',
// org: '<MY-ORG-NAME>',
// app: '<MY-APP-NAME>',
custom: {
esbuild: {
bundle: true,
minify: false,
sourcemap: true,
exclude: ['aws-sdk'],
target: 'node14',
define: { 'require.resolve': undefined },
platform: 'node',
},
'serverless-offline': {
httpPort: 4000,
},
ngrokTunnel: {
tunnels: [
{
port: 4000,
},
],
},
avatarUploadBucket: '<NAME>',
userReplicationTopic: '<NAME>',
replicatedUserRemovalTopic:
'<NAME>',
},
plugins: [
'serverless-esbuild',
'serverless-offline',
'serverless-ngrok-tunnel',
],
provider: {
name: 'aws',
runtime: 'nodejs14.x',
profile: '<MY-AWS-PROFILE>',
region: '<MY-REGION>',
stage: 'dev',
apiGateway: {
minimumCompressionSize: 1024,
shouldStartNameWithService: true,
},
iamRoleStatements: [
{
Effect: 'Allow',
Action: ['s3:*', 'sns:*'],
Resource: '*',
},
],
environment: {
AWS_NODEJS_CONNECTION_REUSE_ENABLED: '1',
NODE_OPTIONS: '--enable-source-maps --stack-trace-limit=1000',
USER_REPLICATION_TOPIC_ARN: {
Ref: 'UserReplicationSNSTopic',
},
REPLICATED_USER_REMOVAL_TOPIC_ARN: {
Ref: 'ReplicatedUserRemovalSNSTopic',
},
},
lambdaHashingVersion: '20201221',
},
functions: {
hello
},
resources: {
Resources: {
AvatarUploadBucket: {
Type: 'AWS::S3::Bucket',
Properties: {
BucketName: '${self:custom.avatarUploadBucket}',
AccessControl: 'PublicRead',
},
},
UserReplicationSNSTopic: {
Type: 'AWS::SNS::Topic',
Properties: {
TopicName: '${self:custom.userReplicationTopic}',
},
},
ReplicatedUserRemovalSNSTopic: {
Type: 'AWS::SNS::Topic',
Properties: {
TopicName: '${self:custom.replicatedUserRemovalTopic}',
},
},
},
},
outputs: {
snsTopics: {
ReplicatedUserRemovalSNSTopicARN: '!Ref ReplicatedUserRemovalSNSTopic',
},
},
};
module.exports = serverlessConfiguration;
i currently have org and app commented out and it works but if i uncomment them, and send request to the api endpoint i get following error Runtime.ImportModuleError: Error: Cannot find module 's_hello'
it is not about the contents of file since i get this error for every microservice i have and for every function in that microservice, for this commented out version, this is the handler (in aws console)
but if i uncomment it, this is the result
why does this happen?
P.S: I can see the upload also happen in serverless dashboard.