Vercel imposes some limits when using their platform. This includes a serverless function execution timeout, which is basically the amount of time that a serverless function is allowed to process an HTTP request before it must respond.
If you need a longer execution timeout, you can try using Edge functions. They have to return a response in 30 seconds but can stream indefinitely.
Recently, they have silently reduced the serverless function execution timeout from 10s for the hobby plan, 60s for the pro plan and 1000s for the enterprise plan to, respectively, 5s, 15s and 30s. This might be the reason why you're experiencing this error now.
I really didn't like the fact that they lowered these limits without warning their users (I wasn't warned, at least) and giving them time to adjust.