Github Zip Action fails to deploy to AWS Elastic Beanstalk but manually uploading the .zip folder works

I am trying to upload my code to AWS Elastic Beanstalk by zipping the folder and uploading it and this fails to deploy and always becomes severe but if I manually zip the same folder and the same file it works and is deployed.

main.yml

name: Test & Deploy
on:
  push:
    branches:
      - main
jobs:
  deploy:
    runs-on: ubuntu-latest
    steps:
      - name: Checkout Latest Repo
        uses: actions/checkout@main

      - name: Zip Project
        run: zip -r deploy.zip *
        
      - name: Get timestamp
        uses: gerred/actions/current-time@master
        id: current-time

      - name: Run string replace
        uses: frabert/replace-string-action@master
        id: format-time
        with:
          pattern: '[:\.]+'
          string: "${{ steps.current-time.outputs.time }}"
          replace-with: '-'
          flags: 'g'

      - name: Deploy to EB
        uses: einaregilsson/beanstalk-deploy@v20
        with:
          aws_access_key: ${{ secrets.AWS_ACCESS_KEY_ID }}
          aws_secret_key: ${{ secrets.AWS_SECRET_ACCESS_KEY }}
          application_name: WebsiteDocker
          environment_name:  Websitedocker-env
          version_label: "deployment-${{ steps.format-time.outputs.replaced }}"
          region: eu-west-1
          deployment_package: deploy.zip

This is the main.yml file responsible for uploading the files as a .zip.