Error: Failed to publish assets when deploying Nuxt.js 3 to Cloudflare Pages

I’m getting stuck on the “Deploying to Cloudflare’s global network” step for my Nuxt.js 3 app, as the deployment is failing with the message “Failed: an internal error occurred. If this continues, contact support:”
Error: Failed to publish assets - reference to the deployment ID: ffdbc0fe-ccdf-4362-9e7f-d8bb2d5657e7

To give an idea of what I’m building. I’m trying to move my WordPress blog to Nuxt.js (Nuxt 3 with Nuxt content). It got around 4-5K posts (markdown files) (+ around similar images).

When deploying to Cloudflare with npm run build, the application seems to be fully built, but deploying to "Cloudflare’s global network " seems to failing. I could not find any concrete details from the log file.

Has anyone faced it? or any sort of changes to be made for the deployment?

Running Node v 20/18 and yarn 1
Tried using both /dist and /.output/public directory for output as per previous Cloudflare community threads and Nuxt document. (.output/public seems to show not found? be Cloudflare not able to get the dot folder)