aws lambda Runtime exception with require() of ES Module

[GordonHPepBoys]

I have a lambda that is deployed but encountering runtime error:

2024-03-28T18:44:55.178Z	undefined	ERROR	Uncaught Exception 	
{
    "errorType": "Error",
    "errorMessage": "require() of ES Module /var/task/dist/storeApp/index.js from /var/runtime/index.mjs not supported.\nInstead change the require of index.js in /var/runtime/index.mjs to a dynamic import() which is available in all CommonJS modules.",
    "code": "ERR_REQUIRE_ESM",
    "stack": [
        "Error [ERR_REQUIRE_ESM]: require() of ES Module /var/task/dist/storeApp/index.js from /var/runtime/index.mjs not supported.",
        "Instead change the require of index.js in /var/runtime/index.mjs to a dynamic import() which is available in all CommonJS modules.",
        "    at _tryRequireFile (file:///var/runtime/index.mjs:1002:37)",
        "    at _tryRequire (file:///var/runtime/index.mjs:1046:29)",
        "    at _loadUserApp (file:///var/runtime/index.mjs:1081:22)",
        "    at UserFunction.js.module.exports.load (file:///var/runtime/index.mjs:1119:27)",
        "    at start (file:///var/runtime/index.mjs:1282:42)",
        "    at file:///var/runtime/index.mjs:1288:7"
    ]
}

The code is a mix of comonjs and ESM . We are currently using nodejs18 and typescript 5.3.3. The tsconfig file is as follows:

{
  "extends": "@tsconfig/node18/tsconfig.json",
  "compilerOptions": {
    "module": "ES2022",
    "target": "ES2022",
    "moduleResolution": "node",
    "outDir": "dist",
    "sourceMap": true,
    "lib": ["ES2022", "dom"],
    "types": ["node", "jest", "@types/jest", "@types/node"],
    "strict": false,
    "noImplicitAny": false,
    "esModuleInterop": true,
    "skipLibCheck": false,
    "forceConsistentCasingInFileNames": false
  },
  "include": ["**/*.ts"],
  "exclude": ["node_modules"]
}

In the package.json I have added "type": "module",
What's the correct tsconfig file for resolving the runtime issue?
Please advise. Thanks, Gordon