Serverless does not recognize useDotEnv

When trying to set useDotEnv: true I get unrecognized property 'useDotEnv' error, and the .env file does not load:

Serverless version: 3.21.0

serverless.env:

useDotEnv: true
service: cocoa
frameworkVersion: "3"

provider:
  name: aws
  runtime: nodejs16.x
  architecture: arm64
  region: ${opt:region, 'us-west-2'}
  environment:
    APP_NAME: ${self:service}
    LOG_LEVEL: ${env:LOG_LEVEL, 'UNDEFINED'}

custom:
  serverless-offline:
    noPrependStageInUrl: true

plugins:
  - serverless-plugin-typescript
  - serverless-offline

What am I doing wrong?

useDotenv: true

works for me.