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Environment variables not updating in new lambda function version

See original GitHub issue

This is a Bug Report

Description

For bug reports:

What went wrong? New environment variables are not deploying to new function version for AWS Lambda. I’ve verified that the new variables are properly set inside the CloudFormation stack template. I’ve also ran every variation of deploy (with -p, with -f, with --force, with --update-config, and with code changes). My base use case is to sls package first, then deploy with -p
What did you expect should have happened? Changing or adding environment variables in serverless.yml should update environment variables in lambda console for the corresponding function version when deployed.
What was the config you used?

service:
  name: foo-service
  awsKmsKeyArn: ${ssm:/infra/lambda-env-kms-key-id}

frameworkVersion: "^1.25.0"

functions:
  foo-service:
    name: ${self:custom.stageNames.${self:provider.stage}, self:custom.defaultName}
    handler: dist/lambda.handler

provider:
  name: aws
  stage: ${opt:stage, self:custom.defaultStage}
  region: us-east-1
  profile: serverless
  deploymentBucket:
    name: ${ssm:/infra/serverless-deployment-bucket}
    serverSideEncryption: aws:kms
    sseKMSKeyId: ${ssm:/infra/serverless-deployment-bucket-kms-key-id}
  
  # service function settings
  runtime: nodejs6.10
  memorySize: 1024
  timeout: 30
  environment:
    SERVERLESS_STAGE: ${self:provider.stage}
    SERVERLESS_ALIAS: ${self:provider.alias}
    NODE_ENV: ${ssm:/infra/NODE_ENV}
    MY_NEW_ENV_VAR: ${ssm:/infra/foobar}
  vpc:
    subnetIds:
      - ${ssm:/infra/lambda-subnet}
    securityGroupIds:
      - ${ssm:/infra/lambda-sg}

custom:
  defaultName: ${self:service}__${self:provider.stage}
  defaultStage: staging
  defaultRegion: us-east-1
  stageNames:
    staging: ${self:service}
    prod: ${self:service}

package:
  include:
    - dist/**
    - node_modules/**
    - '!**/*.d.ts'
    - '!**/*.test.js'
    - '!**/*.spec.js'
    - '!**/__tests__/**'
  exclude:
    - '**'

plugins:
  - serverless-pseudo-parameters
  - serverless-aws-alias