https://www.prisma.io/docs/orm/more/upgrade-guides/upgrading-versions/upgrading-to-prisma-7

Change dotenv import from

import dotenv from "dotenv";
dotenv.config({ path: path.resolve(process.cwd(), ".env") });

To:

import 'dotenv/config';

Example:

import 'dotenv/config';
import { defineConfig, env } from 'prisma/config';

export default defineConfig({
    schema: './schema.prisma',
    datasource: {
        url: env('DATABASE_URL')
    }
});