Hi Josef,
Unless your strapi is in a production environment, deploying in a serverless environment is no good.
As indicated in my question , when you deploy in a serverless environment the files that gets created initially is deleted. Hence the strapi deletes the entries in the database as well.
So move your deployment to a VM ( for dev env )or in your local since you have persistent storage.
Once you have all the dev done, you can then move the stuff to your production environment.
Hope this helps.
Regards
Srini