Error on sst deploy Your sst.config.ts has top level imports – this is not allowed

Im upgrading from SST 3.2 to 3.11 but as soon as I use the deploy command, I get the following error: Your sst.config.ts has top level imports - this is not allowed. Move imports inside the function they are used and do a dynamic import: const mod = await import("./mod")

This is my old .config file:

import { settings } from 'path/to/settings';

const type = 'test';

export default $config(settings(type));

I have tried to change the config file like this:

const type = 'test';

export default $config(async () => {
  const { settings } = await import('path/to/settings');
  return settings(type);
});

But I get this error Unexpected error occurred. Please run with --print-logs or check .sst/log/sst.log if available. with an empty log folder.

I have tried to search for documentation on this but I have not been able to find anything. Has anyone experienced something similar when upgrading?