Calling netlify function from nuxt3 SSR

Question

I've developed an application using Nuxt3, hosted it on Netlify, and incorporated Netlify Functions. Everything works smoothly when i set ssr: false, but when I opt for the default option ssr: true, i encounter an error when $fetch calls a Netlify function:

[nitro] [unhandledRejection] FetchError: [GET] "/.netlify/functions/customFunction1": 404 Page not found: /.netlify/functions/customFunction1

I'm trying to figure out what's causing this issue. Any insights on what I might be missing?

nuxt.config.js

export default defineNuxtConfig({
  devtools: { enabled: true },

  runtimeConfig: {
    public: {
      gtagId: 'XXXXXX',
    },
    app: {
      "baseURL": "/",
    }
  },


  modules: ["@nuxtjs/i18n", "@pinia/nuxt"],

  i18n: {
    vueI18n: "./i18n.config.js",
  },

  css: [
    "vuetify/lib/styles/main.sass",
    "@mdi/font/css/materialdesignicons.min.css",
    "@/assets/style/main.scss",
  ],

  build: {
    transpile: ["vuetify"],
  },

  alias: {
    pinia: "/node_modules/@pinia/nuxt/node_modules/pinia/dist/pinia.mjs"
  }

});