Serverless deploy fails on lambda with event stream

I am using Serverless v 4.26.0

Plugin: 5.3.0
SDK: 4.2.3
Components: 3.12.0

simply trying to set up a lambda with a trigger of stream from DDB. I have the Stream arn as well, but any flavor I try setting the events I get the following error:

An error occurred: IamRoleLambdaExecution - The policy failed legacy parsing

If I take out the stream event, it works. Here is my code:

functions:

  sessions-stream-listener:

    handler: handler.listener

    environment:

      SESSIONS_STREAM_NAME: ${self:provider.stage}-sessions-fan-out

    events:

      - stream:

          type: dynamodb

          arn: arn:aws:dynamodb:region:account_id:table/table_name/stream/stream_name

I have obfuscated the actual ARN but you get the idea.

I have also tried:

functions:

  sessions-stream-listener:

    handler: handler.listener

    environment:

      SESSIONS_STREAM_NAME: ${self:provider.stage}-sessions-fan-out

    events:

      - stream: arn:aws:dynamodb:region:account_id:table/table_name/stream/stream_name

It seems no matter what, I get this error.

Has anyone had this issue before? Kinda of banging my head on my desk about this. Not sure what I can do.

I also used this as reference, https://www.serverless.com/framework/docs/providers/aws/events/streams/, which should match the docs.