Is it not possible to deploy json files in netlify functions?

My (mis?) understanding is if I use Netlify Dev deployment, I don’t need to bundle or zip anything. Here’s the original issue(s):

My next attempt is going to be to ditch netlify-lambda and webpack, shove the .json in my functions folder, change netlify.toml to point to the functions folder (instead of functions-build) and just deploy via Netlify Dev’s CLI. What could go wrong?