I have been working with AWS SAM and ran into a similar error here: CloudFormation cannot update a stack when a custom-named resource requires replacing. AWS support recommended that I remove the resource from the template so it gets deleted, then put it back in later. I think it's cleaner that way than renaming the resource to a dummy new name. Well, just an idea :) I'm not entirely sure if things will work the same way in Serverless. Would like to hear your thoughts on this. Thanks.