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Are you asking why you're seeing that error or how you can stop seeing that error? If the "why" question then it's because lambda has a maximum deployment size of 50MB (see https://docs.aws.amazon.com/lambda/latest/dg/gettingstarted-limits.html) If the "how can I rectify this", can you share your code? There are a few different ways of doing lambda with Pulumi so more information would be useful. If you don't want to share here, you're welcome to email support@pulumi.com and I can take a look

I can deploy without problems using serverless framework. Sure, this is the python code I'm using (slightly modified):

apiLambda = aws.lambda_.Function(
  resource_name="api",
  opts=pulumi.ResourceOptions(depends_on=[apiLambdaPolicy]),
  runtime="java11",
  code="test.jar",
  handler="path to handler",
  role=apiLambdaRole.arn,
  publish=False,
  memory_size=512,
  timeout=30,
)