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I was upgraded to v4.31.0 today, and now receive this error when running serverless dev on a project that works with previous versions. I have also confirmed that others on my team are experiencing the issue.
✖ Error: EMFILE: too many open files, watch
at FSWatcher._handle.onchange (node:internal/fs/watchers:214:21)
Pinning a previous version in serverless.yml resolves the issue.