Issue while running in Firebase Emulator (Cloud Functions)

Issue: Getting following error while running inside Firebase Functions

Error [ERR_REQUIRE_ESM]: require() of ES Module ./node_modules/nanoid/index.js from ./cff/lib/utils/idGeneration.js not supported.
Instead change the require of index.js in ./cff/lib/utils/idGeneration.js to a dynamic import() which is available in all CommonJS modules.
    at Object.<anonymous> (./cff/lib/utils/idGeneration.js:4:18) {
  code: 'ERR_REQUIRE_ESM'
}

Setup:

TypeScript v5.3.2
NodeJS v20.10.0
Firebase Emulator (Firebase v12.9.1)
nanoid v5.0.3

tsconfig.json

{
  "compilerOptions": {
    "target": "ES2017",
    "module": "CommonJS",
    "strict": true,
    "noImplicitReturns": true,
    "noUnusedLocals": true,
    "outDir": "lib",
    "sourceMap": true,
    "resolveJsonModule": true,
    "esModuleInterop": true,
    "allowSyntheticDefaultImports": true,
    "useUnknownInCatchVariables": true,
    "lib": [
      "ES2017",
      "DOM",
    ],
    "typeRoots": [
      "types",
      "node_modules/@types",
    ],
  },
  "compileOnSave": true,
  "include": [
    "src",
  ],
  "settings": {
    "import/resolver": {
      "typescript": {}
    },
  },
}

Code:

idGeneration.ts

import { customAlphabet } from "nanoid";

export function generateId(): string {
  const alphabet = "0123456789ABCDEFGHIJKLMNOPQRSTUVWXYZabcdefghijklmnopqrstuvwxyz";
  const result = customAlphabet(alphabet, 12)();
  return result;
}

Notes:

Typescript build process is successful, above is runtime error.
Same error is thrown when the code is run outside Firebase Emulator with Node v21.3.0, Typescript v5.3.2 & nanoid v5.0.3

Temporary Fix:

Switching to the older version of nanoid (v3.3.7) does not throw this error.

ai / nanoid

Issue while running in Firebase Emulator (Cloud Functions) #458