Parcel keeps rewriting srcs and hrefs after parsing "parcel /index.html" but not after "parcel index.html" (while inside dir)

Question

I just started learning Parcel, so apologies if this question makes no sense.

Basically, when I'm inside a projectName/dist parcel index.html works just fine however when I'm in projectName dir and try parcel .\dist\index.html I get this monstrosity:

‼  Could not load existing sourcemap of "base.cf80568e.css".
Browserslist: caniuse-lite is outdated. Please run:
×  C:\[...]\projectName\dist\style.251b6741.3dae4bc5.js: ENOENT: no such file or directory, open 'C:\[...]\projectName\dist\style.251b6741.3dae4bc5.js'
Error: ENOENT: no such file or directory, open 'C:\[...]\projectName\dist\style.251b6741.3dae4bc5.js'
‼  Could not load existing sourcemap of "style.251b6741.css".
‼  Could not load existing sourcemap of "base.cf80568e.css".
Browserslist: caniuse-lite is outdated. Please run:
  npx browserslist@latest --update-db
  Why you should do it regularly: https://github.com/browserslist/browserslist#browsers-data-updating
Browserslist: caniuse-lite is outdated. Please run:
  npx browserslist@latest --update-db
  Why you should do it regularly: https://github.com/browserslist/browserslist#browsers-data-updating

Inside html, my css and js references change from e.g. style.css to /style.251b6741.eb5df69a.css (which gets created in dist folder and is the exact copy of style.css).

Also after parsing npx browserslist@latest --update-db in terminal, I get a message that everything is up to date???

I have no clue why it does that, I've searched the internet for somebody to have the same problem for about 2h now, to no avail :c