Getting the following Error "http://localhost:3000/api/signup 500 (Internal Server Error)" on Sign Up feature trying to build in Next React TypeScript

Question

Can anyone tell me why I am getting this error:

Here is my Sign Up front end code

`"use client";

import { zodResolver } from "@hookform/resolvers/zod";
import React from "react";
import { useForm, type FieldValues } from "react-hook-form";
import { signUpSchema, TSignUpSchema } from "@/lib/types";
import Link from "next/link";
import { useRouter } from "next/navigation";

function SignUp() {
const router = useRouter();

const {
register,
handleSubmit,
formState: { errors, isSubmitting, isLoading },
reset,
setError,

} = useForm\<TSignUpSchema\>({
resolver: zodResolver(signUpSchema),
});

const onSubmit = async (data: TSignUpSchema) =\> {
try {
const response = await fetch("/api/signup", {
method: "POST",
headers: {
"Content-Type": "application/json",
},
body: JSON.stringify(data),
});

      if (response.status === 400) {
        setError("email", {
          type: "duplicate email",
          message: "email already exists",
        });
      }
      if (response.status === 200) {
        router.push("/login");
      }
    } catch (err) {
      setError("root", {
        type: "unknown",
        message: "unknown error!!please try again",
      });
    }
    
    console.log(data);`

Here is my Servcer Side Code

import { signUpSchema } from "@/lib/types";
import { NextResponse } from "next/server";

import UserModel from "@/models/User";
import connect from "@/utils/db";
import bcrypt from "bcryptjs";

export async function POST(request: Request) {
  const body = await request.json();

  const { email_raw, password_raw } = body;
  const email = signUpSchema.safeParse(email_raw);
  const password = signUpSchema.safeParse(password_raw);

  await connect();

const existingUser = await UserModel.findOne({ email });

  if (existingUser) {
    return new NextResponse("Email is already in use", { status: 400 });
  }

  if (typeof password !== "string") {
    return new NextResponse("Password must be a string", { status: 400 });
  }
  const hashedPassword = await bcrypt.hash(password, 5);
  const newUser = new UserModel({
    email,
    password: hashedPassword,
  });

  try {
    await newUser.save();
    return new NextResponse("user is registered", { status: 200 });
  } catch (err: any) {
    return new NextResponse(err.message || "Internal Server Error", {
      status: 500,
    });
  }
}

Please help on this error. I expected to reach the login Page. Have got no clue what I am doing wrong. But getting the following error:"http://localhost:3000/api/signup 500 (Internal Server Error)". Kind of new here. Would really appreciate the help.