Error installing modules for bad env

Not sure why it doesn't work, i set the NODE_VERSION to 17.0.0, tried in local using that version and it seems to work too. The error also says that the node version is set correctly.
00:33:08.770    Downloading and installing node v17.0.0...
00:33:09.210    Downloading https://nodejs.org/dist/v17.0.0/node-v17.0.0-linux-x64.tar.xz...
00:33:09.656    Computing checksum with sha256sum
00:33:09.787    Checksums matched!
00:33:14.976    Now using node v17.0.0 (npm v8.1.0)

...

00:33:20.663    Installing NPM modules using NPM version 8.1.0
00:33:21.716    npm ERR! code EBADENGINE
00:33:21.718    npm ERR! engine Unsupported engine
00:33:21.718    npm ERR! engine Not compatible with your version of node/npm: @sveltejs/kit@1.5.0
00:33:21.718    npm ERR! notsup Not compatible with your version of node/npm: @sveltejs/kit@1.5.0
00:33:21.718    npm ERR! notsup Required: {"node":"^16.14 || >=18"}
00:33:21.719    npm ERR! notsup Actual:   {"npm":"8.1.0","node":"v17.0.0"}
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