Using Serverless Framework with serverless-bundle for using custom layers in a lambda

Trying to have a custom code as part of lambda layer. However when trying to import the same inside a lambda function getting an error. The layer works fine if i remove the serverless-bundle.

Error:

[OperationalError: ENOENT: no such file or directory, lstat '/services/xyz/.webpack/dependencies/node_modules'] {
  cause: [Error: ENOENT: no such file or directory, lstat '/services/xyz/.webpack/dependencies/node_modules'] {
    errno: -2,
    code: 'ENOENT',
    syscall: 'lstat',
    path: '/services/xyz/.webpack/dependencies/node_modules'
  },
  isOperational: true,
  errno: -2,
  code: 'ENOENT',
  syscall: 'lstat',
  path: '/services/xyz/.webpack/dependencies/node_modules'
}