Phew, got it working.
I appreciate the input @dthyresson, I tried removing console logs altogether from everywhere in my API but that didn’t work. According to this comment 422, failed to handle signup webhook is somewhat meaningless since Gotrue uses it for just about any error.
The work around was to believe the error I was getting from the function logs in netlify and make graphql-tag and explicit dependency. Atm I leaning pretty heavily towards this being a Redwood bug, what are your thoughts?
More details of my fix in this PR here.