Hosting - Creating a nested amplify project is not supported

### Before opening, please confirm:

- [X] I have installed the latest version of the Amplify CLI (see above), and confirmed that the issue still persists.
- [X] I have [searched for duplicate or closed issues](https://github.com/aws-amplify/amplify-cli/issues?q=is%3Aissue+).
- [X] I have read the guide for [submitting bug reports](https://github.com/aws-amplify/amplify-cli/blob/dev/CONTRIBUTING.md#bug-reports).
- [X] I have done my best to include a minimal, self-contained set of instructions for consistently reproducing the issue.
- [X] I have removed any sensitive information from my code snippets and submission.

### How did you install the Amplify CLI?

npm

### If applicable, what version of Node.js are you using?

16.10.0

### Amplify CLI Version

7.6.7

### What operating system are you using?

Mac

### Did you make any manual changes to the cloud resources managed by Amplify? Please describe the changes made.

no

### Amplify Categories

hosting

### Amplify Commands

Not applicable

### Describe the bug

Since today our hosting CI/CD crashes when building the backend with the error message:
_Creating a nested amplify project is not supported. Project root detected: /codebuild/output/srcxxxxxxx/src/xxxxxx_
Because the only change from our successful build was a little bit of frontend code, we already thought that this bug cant be due to our latest change, so for testing we rolled back to the last successful build, but the error still occurs.

Any ideas?

### Expected behavior

CI/CD pipeline should build it like normal

### Reproduction steps

Redeploy a version in CI/CD pipeline

### GraphQL schema(s)

```graphql
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### Project Identifier

_No response_

### Log output

```
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### Additional information

_No response_