diff --git a/.changeset/real-crabs-listen.md b/.changeset/real-crabs-listen.md
new file mode 100644
index 00000000000..d570fae20e6
--- /dev/null
+++ b/.changeset/real-crabs-listen.md
@@ -0,0 +1,4 @@
+---
+---
+
+ci: update retry and timeout on Transaction `SqueezedOut` test
\ No newline at end of file
diff --git a/.changeset/stupid-planets-joke.md b/.changeset/stupid-planets-joke.md
new file mode 100644
index 00000000000..9213f7b4aa5
--- /dev/null
+++ b/.changeset/stupid-planets-joke.md
@@ -0,0 +1,6 @@
+---
+"@fuel-ts/account": patch
+"@fuel-ts/errors": patch
+---
+
+chore: add validation for TX max outputs exceeded
diff --git a/.changeset/ten-otters-report.md b/.changeset/ten-otters-report.md
new file mode 100644
index 00000000000..249bda45e90
--- /dev/null
+++ b/.changeset/ten-otters-report.md
@@ -0,0 +1,6 @@
+---
+"@fuel-ts/abi-typegen": patch
+"@fuel-ts/utils": patch
+---
+
+feat: improve typegen bytecode compression
diff --git a/apps/docs/src/guide/errors/index.md b/apps/docs/src/guide/errors/index.md
index fe61222a90a..71f3ebe6e00 100644
--- a/apps/docs/src/guide/errors/index.md
+++ b/apps/docs/src/guide/errors/index.md
@@ -301,4 +301,8 @@ If you believe you found a bug, please report the [issue](https://github.com/Fue
 
 ### `MAX_INPUTS_EXCEEDED`
 
-When the number of transaction inputs exceeds the maximum limit allowed by the blockchain.
\ No newline at end of file
+When the number of transaction inputs exceeds the maximum limit allowed by the blockchain.
+
+### `MAX_OUTPUTS_EXCEEDED`
+
+When the number of transaction outputs exceeds the maximum limit allowed by the blockchain.
diff --git a/packages/abi-typegen/src/templates/contract/factory.hbs b/packages/abi-typegen/src/templates/contract/factory.hbs
index 7ac88b6e86c..4810bcbba2e 100644
--- a/packages/abi-typegen/src/templates/contract/factory.hbs
+++ b/packages/abi-typegen/src/templates/contract/factory.hbs
@@ -1,11 +1,11 @@
 {{header}}
 
-import { ContractFactory } from "fuels";
+import { ContractFactory, decompressBytecode } from "fuels";
 import type { Provider, Account, DeployContractOptions, DeployContractResult } from "fuels";
 
 import { {{capitalizedName}} } from "./{{capitalizedName}}";
 
-const bytecode = "{{hexlifiedBinString}}";
+const bytecode = decompressBytecode("{{compressedBytecode}}");
 
 export class {{capitalizedName}}Factory extends ContractFactory {
 
diff --git a/packages/abi-typegen/src/templates/contract/factory.test.ts b/packages/abi-typegen/src/templates/contract/factory.test.ts
index 18384a62f71..7983ca9ae6b 100644
--- a/packages/abi-typegen/src/templates/contract/factory.test.ts
+++ b/packages/abi-typegen/src/templates/contract/factory.test.ts
@@ -1,3 +1,4 @@
+import * as utilsMod from '@fuel-ts/utils';
 import { join } from 'path';
 
 import {
@@ -24,6 +25,8 @@ describe('templates/factory', () => {
     const project = getTypegenForcProject(AbiTypegenProjectsEnum.MINIMAL);
     const rawContents = project.abiContents;
 
+    vi.spyOn(utilsMod, 'compressBytecode').mockReturnValueOnce('0x-bytecode-here');
+
     // executing
     const abi = new Abi({
       filepath: './my-contract-abi.json',
diff --git a/packages/abi-typegen/src/templates/contract/factory.ts b/packages/abi-typegen/src/templates/contract/factory.ts
index b4611a81c7e..08553d22da0 100644
--- a/packages/abi-typegen/src/templates/contract/factory.ts
+++ b/packages/abi-typegen/src/templates/contract/factory.ts
@@ -1,3 +1,5 @@
+import { compressBytecode } from '@fuel-ts/utils';
+
 import type { Abi } from '../../abi/Abi';
 import { renderHbsTemplate } from '../renderHbsTemplate';
 
@@ -22,7 +24,7 @@ export function renderFactoryTemplate(params: { abi: Abi }) {
       capitalizedName,
       abiJsonString,
       storageSlotsJsonString,
-      hexlifiedBinString,
+      compressedBytecode: compressBytecode(hexlifiedBinString),
     },
   });
 
diff --git a/packages/abi-typegen/src/templates/predicate/main.hbs b/packages/abi-typegen/src/templates/predicate/main.hbs
index 30886b91ad9..03cbaf76dd6 100644
--- a/packages/abi-typegen/src/templates/predicate/main.hbs
+++ b/packages/abi-typegen/src/templates/predicate/main.hbs
@@ -59,7 +59,7 @@ export type {{capitalizedName}}Parameters = Omit<
 
 const abi = {{abiJsonString}};
 
-const bytecode = '{{hexlifiedBinString}}';
+const bytecode = decompressBytecode('{{compressedBytecode}}');
 
 export class {{capitalizedName}} extends Predicate<
   {{capitalizedName}}Inputs,
diff --git a/packages/abi-typegen/src/templates/predicate/main.test.ts b/packages/abi-typegen/src/templates/predicate/main.test.ts
index 144502ba509..f545c655e58 100644
--- a/packages/abi-typegen/src/templates/predicate/main.test.ts
+++ b/packages/abi-typegen/src/templates/predicate/main.test.ts
@@ -1,4 +1,5 @@
 import { safeExec } from '@fuel-ts/errors/test-utils';
+import * as utilsMod from '@fuel-ts/utils';
 import { join } from 'path';
 
 import {
@@ -18,7 +19,13 @@ import { renderMainTemplate } from './main';
  * @group node
  */
 describe('main.ts', () => {
+  afterEach(() => {
+    vi.restoreAllMocks();
+  });
+
   test('should render main template', () => {
+    vi.spyOn(utilsMod, 'compressBytecode').mockReturnValueOnce('0x-bytecode-here');
+
     const { restore } = mockVersions();
 
     const project = getTypegenForcProject(AbiTypegenProjectsEnum.PREDICATE);
@@ -46,6 +53,8 @@ describe('main.ts', () => {
   });
 
   test('should render main template with configurable', () => {
+    vi.spyOn(utilsMod, 'compressBytecode').mockReturnValueOnce('0x-bytecode-here');
+
     const { restore } = mockVersions();
 
     const project = getTypegenForcProject(AbiTypegenProjectsEnum.PREDICATE_WITH_CONFIGURABLE);
diff --git a/packages/abi-typegen/src/templates/predicate/main.ts b/packages/abi-typegen/src/templates/predicate/main.ts
index bfe4f0bd05d..1861cbab8af 100644
--- a/packages/abi-typegen/src/templates/predicate/main.ts
+++ b/packages/abi-typegen/src/templates/predicate/main.ts
@@ -1,4 +1,5 @@
 import { ErrorCode, FuelError } from '@fuel-ts/errors';
+import { compressBytecode } from '@fuel-ts/utils';
 
 import type { Abi } from '../../abi/Abi';
 import { renderHbsTemplate } from '../renderHbsTemplate';
@@ -32,7 +33,7 @@ export function renderMainTemplate(params: { abi: Abi }) {
   const { structs } = formatStructs({ types });
   const { imports } = formatImports({
     types,
-    baseMembers: ['Predicate', 'Provider', 'InputValue', 'PredicateParams'],
+    baseMembers: ['Predicate', 'Provider', 'InputValue', 'PredicateParams', 'decompressBytecode'],
   });
 
   const { prefixedInputs: inputs, output } = func.attributes;
@@ -45,7 +46,7 @@ export function renderMainTemplate(params: { abi: Abi }) {
       structs,
       enums,
       abiJsonString,
-      hexlifiedBinString,
+      compressedBytecode: compressBytecode(hexlifiedBinString),
       capitalizedName,
       imports,
       configurables,
diff --git a/packages/abi-typegen/src/templates/script/main.hbs b/packages/abi-typegen/src/templates/script/main.hbs
index afcc912bef2..225d540e9ca 100644
--- a/packages/abi-typegen/src/templates/script/main.hbs
+++ b/packages/abi-typegen/src/templates/script/main.hbs
@@ -53,7 +53,7 @@ export type {{capitalizedName}}Configurables = Partial<{
 
 const abi = {{abiJsonString}};
 
-const bytecode = '{{hexlifiedBinString}}';
+const bytecode = decompressBytecode('{{compressedBytecode}}');
 
 export class {{capitalizedName}} extends Script<{{capitalizedName}}Inputs, {{capitalizedName}}Output> {
 
diff --git a/packages/abi-typegen/src/templates/script/main.test.ts b/packages/abi-typegen/src/templates/script/main.test.ts
index 1f6d0311f69..4ef110104b8 100644
--- a/packages/abi-typegen/src/templates/script/main.test.ts
+++ b/packages/abi-typegen/src/templates/script/main.test.ts
@@ -1,4 +1,5 @@
 import { safeExec } from '@fuel-ts/errors/test-utils';
+import * as utilsMod from '@fuel-ts/utils';
 import { join } from 'path';
 
 import {
@@ -18,7 +19,13 @@ import { renderMainTemplate } from './main';
  * @group node
  */
 describe('main.ts', () => {
+  afterEach(() => {
+    vi.restoreAllMocks();
+  });
+
   test('should render main template', () => {
+    vi.spyOn(utilsMod, 'compressBytecode').mockReturnValueOnce('0x-bytecode-here');
+
     const { restore } = mockVersions();
 
     const project = getTypegenForcProject(AbiTypegenProjectsEnum.SCRIPT);
@@ -45,6 +52,8 @@ describe('main.ts', () => {
   });
 
   test('should render main template with configurables', () => {
+    vi.spyOn(utilsMod, 'compressBytecode').mockReturnValueOnce('0x-bytecode-here');
+
     const { restore } = mockVersions();
 
     const project = getTypegenForcProject(AbiTypegenProjectsEnum.SCRIPT_WITH_CONFIGURABLE);
diff --git a/packages/abi-typegen/src/templates/script/main.ts b/packages/abi-typegen/src/templates/script/main.ts
index b48710b653d..b3ef77de1ee 100644
--- a/packages/abi-typegen/src/templates/script/main.ts
+++ b/packages/abi-typegen/src/templates/script/main.ts
@@ -1,4 +1,5 @@
 import { ErrorCode, FuelError } from '@fuel-ts/errors';
+import { compressBytecode } from '@fuel-ts/utils';
 
 import type { Abi } from '../../abi/Abi';
 import { renderHbsTemplate } from '../renderHbsTemplate';
@@ -30,7 +31,10 @@ export function renderMainTemplate(params: { abi: Abi }) {
 
   const { enums } = formatEnums({ types });
   const { structs } = formatStructs({ types });
-  const { imports } = formatImports({ types, baseMembers: ['Script', 'Account'] });
+  const { imports } = formatImports({
+    types,
+    baseMembers: ['Script', 'Account', 'decompressBytecode'],
+  });
 
   const { prefixedInputs: inputs, output } = func.attributes;
 
@@ -42,7 +46,7 @@ export function renderMainTemplate(params: { abi: Abi }) {
       structs,
       enums,
       abiJsonString,
-      hexlifiedBinString,
+      compressedBytecode: compressBytecode(hexlifiedBinString),
       capitalizedName,
       imports,
       configurables,
diff --git a/packages/abi-typegen/test/fixtures/templates/contract/factory.hbs b/packages/abi-typegen/test/fixtures/templates/contract/factory.hbs
index c1c4d0796cf..fb8630c1371 100644
--- a/packages/abi-typegen/test/fixtures/templates/contract/factory.hbs
+++ b/packages/abi-typegen/test/fixtures/templates/contract/factory.hbs
@@ -10,12 +10,12 @@
   Fuel-Core version: 33.33.33
 */
 
-import { ContractFactory } from "fuels";
+import { ContractFactory, decompressBytecode } from "fuels";
 import type { Provider, Account, DeployContractOptions, DeployContractResult } from "fuels";
 
 import { MyContract } from "./MyContract";
 
-const bytecode = "0x-bytecode-here";
+const bytecode = decompressBytecode("0x-bytecode-here");
 
 export class MyContractFactory extends ContractFactory {
 
diff --git a/packages/abi-typegen/test/fixtures/templates/predicate-with-configurable/main.hbs b/packages/abi-typegen/test/fixtures/templates/predicate-with-configurable/main.hbs
index 86204f512ae..afd2e10c3c4 100644
--- a/packages/abi-typegen/test/fixtures/templates/predicate-with-configurable/main.hbs
+++ b/packages/abi-typegen/test/fixtures/templates/predicate-with-configurable/main.hbs
@@ -12,6 +12,7 @@
 
 import {
   BigNumberish,
+  decompressBytecode,
   InputValue,
   Predicate,
   PredicateParams,
@@ -99,7 +100,7 @@ const abi = {
   ]
 };
 
-const bytecode = '0x000';
+const bytecode = decompressBytecode('0x-bytecode-here');
 
 export class MyPredicate extends Predicate<
   MyPredicateInputs,
diff --git a/packages/abi-typegen/test/fixtures/templates/predicate/main.hbs b/packages/abi-typegen/test/fixtures/templates/predicate/main.hbs
index 12c5e476e31..dd6bc168cba 100644
--- a/packages/abi-typegen/test/fixtures/templates/predicate/main.hbs
+++ b/packages/abi-typegen/test/fixtures/templates/predicate/main.hbs
@@ -13,6 +13,7 @@
 import {
   BigNumberish,
   BN,
+  decompressBytecode,
   InputValue,
   Predicate,
   PredicateParams,
@@ -297,7 +298,7 @@ const abi = {
   "configurables": []
 };
 
-const bytecode = '0x000';
+const bytecode = decompressBytecode('0x-bytecode-here');
 
 export class MyPredicate extends Predicate<
   MyPredicateInputs,
diff --git a/packages/abi-typegen/test/fixtures/templates/script-with-configurable/main.hbs b/packages/abi-typegen/test/fixtures/templates/script-with-configurable/main.hbs
index 33636339ed2..c9d6be8b7cf 100644
--- a/packages/abi-typegen/test/fixtures/templates/script-with-configurable/main.hbs
+++ b/packages/abi-typegen/test/fixtures/templates/script-with-configurable/main.hbs
@@ -13,6 +13,7 @@
 import {
   Account,
   BigNumberish,
+  decompressBytecode,
   Script,
 } from 'fuels';
 
@@ -92,7 +93,7 @@ const abi = {
   ]
 };
 
-const bytecode = '0x000';
+const bytecode = decompressBytecode('0x-bytecode-here');
 
 export class MyScript extends Script<MyScriptInputs, MyScriptOutput> {
 
diff --git a/packages/abi-typegen/test/fixtures/templates/script/main.hbs b/packages/abi-typegen/test/fixtures/templates/script/main.hbs
index 239131def05..c99d2319601 100644
--- a/packages/abi-typegen/test/fixtures/templates/script/main.hbs
+++ b/packages/abi-typegen/test/fixtures/templates/script/main.hbs
@@ -14,6 +14,7 @@ import {
   Account,
   BigNumberish,
   BN,
+  decompressBytecode,
   Script,
 } from 'fuels';
 
@@ -289,7 +290,7 @@ const abi = {
   "configurables": []
 };
 
-const bytecode = '0x000';
+const bytecode = decompressBytecode('0x-bytecode-here');
 
 export class MyScript extends Script<MyScriptInputs, MyScriptOutput> {
 
diff --git a/packages/account/src/providers/provider.test.ts b/packages/account/src/providers/provider.test.ts
index 9f7198a9736..a87c419ed95 100644
--- a/packages/account/src/providers/provider.test.ts
+++ b/packages/account/src/providers/provider.test.ts
@@ -677,7 +677,53 @@ describe('Provider', () => {
       () => sender.sendTransaction(request),
       new FuelError(
         ErrorCode.MAX_INPUTS_EXCEEDED,
-        'The transaction exceeds the maximum allowed number of inputs for funding.'
+        'The transaction exceeds the maximum allowed number of inputs.'
+      )
+    );
+  });
+
+  it('should throws if max of ouputs was exceeded', async () => {
+    const maxOutputs = 2;
+    using launched = await setupTestProviderAndWallets({
+      nodeOptions: {
+        snapshotConfig: {
+          chainConfig: {
+            consensus_parameters: {
+              V1: {
+                tx_params: {
+                  V1: {
+                    max_outputs: maxOutputs,
+                  },
+                },
+              },
+            },
+          },
+        },
+      },
+      walletsConfig: {
+        count: 3,
+      },
+    });
+
+    const {
+      wallets: [sender, receiver1, receiver2],
+      provider,
+    } = launched;
+
+    const baseAssetId = provider.getBaseAssetId();
+
+    const request = new ScriptTransactionRequest();
+    const resources = await sender.getResourcesToSpend([[1000, baseAssetId]]);
+    request.addCoinOutput(receiver1.address, 1, baseAssetId);
+    request.addCoinOutput(receiver2.address, 1, baseAssetId);
+
+    request.addResources(resources);
+
+    await expectToThrowFuelError(
+      () => sender.sendTransaction(request),
+      new FuelError(
+        ErrorCode.MAX_OUTPUTS_EXCEEDED,
+        'The transaction exceeds the maximum allowed number of outputs.'
       )
     );
   });
diff --git a/packages/account/src/providers/provider.ts b/packages/account/src/providers/provider.ts
index 9b3f0da9dc7..b699cbfae38 100644
--- a/packages/account/src/providers/provider.ts
+++ b/packages/account/src/providers/provider.ts
@@ -704,10 +704,18 @@ Supported fuel-core version: ${supportedVersion}.`
   }
 
   private validateTransaction(tx: TransactionRequest, consensusParameters: ConsensusParameters) {
-    if (bn(tx.inputs.length).gt(consensusParameters.txParameters.maxInputs)) {
+    const { maxOutputs, maxInputs } = consensusParameters.txParameters;
+    if (bn(tx.inputs.length).gt(maxInputs)) {
       throw new FuelError(
         ErrorCode.MAX_INPUTS_EXCEEDED,
-        'The transaction exceeds the maximum allowed number of inputs for funding.'
+        'The transaction exceeds the maximum allowed number of inputs.'
+      );
+    }
+
+    if (bn(tx.outputs.length).gt(maxOutputs)) {
+      throw new FuelError(
+        ErrorCode.MAX_OUTPUTS_EXCEEDED,
+        'The transaction exceeds the maximum allowed number of outputs.'
       );
     }
   }
diff --git a/packages/errors/src/error-codes.ts b/packages/errors/src/error-codes.ts
index a8a7d51305c..b543b6b8dc5 100644
--- a/packages/errors/src/error-codes.ts
+++ b/packages/errors/src/error-codes.ts
@@ -78,6 +78,7 @@ export enum ErrorCode {
   TRANSACTION_SQUEEZED_OUT = 'transaction-squeezed-out',
   CONTRACT_SIZE_EXCEEDS_LIMIT = 'contract-size-exceeds-limit',
   MAX_INPUTS_EXCEEDED = 'max-inputs-exceeded',
+  MAX_OUTPUTS_EXCEEDED = 'max-outputs-exceeded',
 
   // receipt
   INVALID_RECEIPT_TYPE = 'invalid-receipt-type',
diff --git a/packages/fuel-gauge/src/transaction-response.test.ts b/packages/fuel-gauge/src/transaction-response.test.ts
index 6c22107e0bf..8e2c72acd47 100644
--- a/packages/fuel-gauge/src/transaction-response.test.ts
+++ b/packages/fuel-gauge/src/transaction-response.test.ts
@@ -204,7 +204,7 @@ describe('TransactionResponse', () => {
 
   it(
     'should throw error for a SqueezedOut status update [waitForResult]',
-    { timeout: 10_000 },
+    { timeout: 10_000, retry: 10 },
     async () => {
       /**
        * a larger --tx-pool-ttl 1s is necessary to ensure that the transaction doesn't get squeezed out
diff --git a/packages/utils/package.json b/packages/utils/package.json
index a800a0a1495..d6247a6a4dd 100644
--- a/packages/utils/package.json
+++ b/packages/utils/package.json
@@ -50,6 +50,7 @@
     "@fuel-ts/errors": "workspace:*",
     "@fuel-ts/interfaces": "workspace:*",
     "@fuel-ts/math": "workspace:*",
-    "@fuel-ts/versions": "workspace:*"
+    "@fuel-ts/versions": "workspace:*",
+    "fflate": "^0.8.2"
   }
 }
diff --git a/packages/utils/src/index.ts b/packages/utils/src/index.ts
index ba483c283e7..deba8f20bc2 100644
--- a/packages/utils/src/index.ts
+++ b/packages/utils/src/index.ts
@@ -13,3 +13,4 @@ export * from './utils/base58';
 export * from './utils/dataSlice';
 export * from './utils/toUtf8Bytes';
 export * from './utils/toUtf8String';
+export * from './utils/bytecode';
diff --git a/packages/utils/src/utils/bytecode.test.ts b/packages/utils/src/utils/bytecode.test.ts
new file mode 100644
index 00000000000..cbd25098034
--- /dev/null
+++ b/packages/utils/src/utils/bytecode.test.ts
@@ -0,0 +1,28 @@
+import { arrayify } from './arrayify';
+import { compressBytecode, decompressBytecode } from './bytecode';
+
+/**
+ * We are using a base64 encoded bytecode here to avoid having to
+ * read the file from disk. This is because we cannot read files
+ * from the filesystem in a browser testing environment.
+ */
+const bytecodeBase64 =
+  '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';
+const bytecodeBinary = Uint8Array.from(atob(bytecodeBase64), (c) => c.charCodeAt(0));
+
+/**
+ * @group node
+ * @group browser
+ */
+describe('bytecode utils', () => {
+  test('should compress bytecode', () => {
+    const compressedBytecode = compressBytecode(bytecodeBinary);
+    expect(compressedBytecode.length).toBeLessThan(bytecodeBinary.length);
+  });
+
+  test('should decompress bytecode', () => {
+    const compressedBytecode = compressBytecode(bytecodeBinary);
+    const decompressedBytecode = decompressBytecode(compressedBytecode);
+    expect(decompressedBytecode).toEqual(arrayify(bytecodeBinary));
+  });
+});
diff --git a/packages/utils/src/utils/bytecode.ts b/packages/utils/src/utils/bytecode.ts
new file mode 100644
index 00000000000..940d31305d0
--- /dev/null
+++ b/packages/utils/src/utils/bytecode.ts
@@ -0,0 +1,24 @@
+import type { BytesLike } from '@fuel-ts/interfaces';
+import { gzipSync, gunzipSync } from 'fflate';
+
+import { arrayify } from './arrayify';
+
+export const compressBytecode = (bytecode?: BytesLike) => {
+  if (!bytecode) {
+    return '';
+  }
+
+  const bytecodeBytes = arrayify(bytecode);
+  const bytecodeGzipped = gzipSync(bytecodeBytes);
+  const bytecodeEncoded = Buffer.from(bytecodeGzipped).toString('base64');
+
+  return bytecodeEncoded;
+};
+
+export const decompressBytecode = (bytecode: string) => {
+  const bytecodeDecoded = Buffer.from(bytecode, 'base64').toString('binary');
+  const bytecodeGzipped = Buffer.from(bytecodeDecoded, 'binary');
+  const bytecodeBytes = gunzipSync(bytecodeGzipped);
+
+  return bytecodeBytes;
+};
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index acfa16737d4..1795d6372f3 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -1164,6 +1164,9 @@ importers:
       '@fuel-ts/versions':
         specifier: workspace:*
         version: link:../versions
+      fflate:
+        specifier: ^0.8.2
+        version: 0.8.2
 
   packages/versions:
     dependencies:
@@ -3772,6 +3775,9 @@ packages:
   '@lit-labs/ssr-dom-shim@1.2.0':
     resolution: {integrity: sha512-yWJKmpGE6lUURKAaIltoPIE/wrbY3TEkqQt+X0m+7fQNnAv0keydnYvbiJFP1PnMhizmIWRWOG5KLhYyc/xl+g==}
 
+  '@lit-labs/ssr-dom-shim@1.2.1':
+    resolution: {integrity: sha512-wx4aBmgeGvFmOKucFKY+8VFJSYZxs9poN3SDNQFF6lT6NrQUnHiPB2PWz2sc4ieEcAaYYzN+1uWahEeTq2aRIQ==}
+
   '@lit/reactive-element@1.6.3':
     resolution: {integrity: sha512-QuTgnG52Poic7uM1AN5yJ09QMe0O28e10XzSvWDz02TJiiKee4stsiownEIadWm8nYzyDAyT+gKzUoZmiWQtsQ==}
 
@@ -6303,8 +6309,8 @@ packages:
     peerDependencies:
       '@babel/core': ^7.0.0-0
 
-  babel-plugin-polyfill-corejs3@0.10.4:
-    resolution: {integrity: sha512-25J6I8NGfa5YkCDogHRID3fVCadIR8/pGl1/spvCkzb6lVn6SR3ojpx9nOn9iEBcUsjY24AmdKm5khcfKdylcg==}
+  babel-plugin-polyfill-corejs3@0.10.6:
+    resolution: {integrity: sha512-b37+KR2i/khY5sKmWNVQAnitvquQbNdWy6lJdsr0kmquCKEEUgMKK4SboVM3HtfnZilfjr4MMQ7vY58FVWDtIA==}
     peerDependencies:
       '@babel/core': ^7.4.0 || ^8.0.0-0 <8.0.0
 
@@ -8200,6 +8206,9 @@ packages:
     resolution: {integrity: sha512-7yAQpD2UMJzLi1Dqv7qFYnPbaPx7ZfFK6PiIxQ4PfkGPyNyl2Ugx+a/umUonmKqjhM4DnfbMvdX6otXq83soQQ==}
     engines: {node: ^12.20 || >= 14.13}
 
+  fflate@0.8.2:
+    resolution: {integrity: sha512-cPJU47OaAoCbg0pBvzsgpTPhmhqI5eJjh/JIu8tPj5q+T7iLvW/JAYUqmE7KOB4R1ZyEhzBaIQpQpardBF5z8A==}
+
   figures@3.2.0:
     resolution: {integrity: sha512-yaduQFRKLXYOGgEn6AZau90j3ggSOyiqXU0F9JZfeXYhNa+Jk4X+s45A2zg5jns87GAFa34BBm2kXw4XpNcbdg==}
     engines: {node: '>=8'}
@@ -9992,6 +10001,10 @@ packages:
     resolution: {integrity: sha512-svTf/fzsKHffP42sujkO/Rjs37BCIsQVRCeNYIm9WN8rgT7ffoUnRtZCqU+6BqcSBdv8gwJeTz8knJpgACeQMw==}
     engines: {node: 14 || >=16.14}
 
+  lru-cache@10.2.0:
+    resolution: {integrity: sha512-2bIM8x+VAf6JT4bKAljS1qUWgMsqZRPGJS6FSahIMPVvctcNhyVp7AJu7quxOW9jwkryBReKZY5tY5JYv2n/7Q==}
+    engines: {node: 14 || >=16.14}
+
   lru-cache@10.4.3:
     resolution: {integrity: sha512-JNAzZcXrCt42VGLuYz0zfAzDfAvJWW6AfYlDBQyDV5DClI2m5sAmK+OIO7s59XfsRsWHp02jAJrRadPRGTt6SQ==}
 
@@ -16478,7 +16491,7 @@ snapshots:
       '@babel/helper-module-imports': 7.24.7
       '@babel/helper-plugin-utils': 7.24.8
       babel-plugin-polyfill-corejs2: 0.4.11(@babel/core@7.25.2)
-      babel-plugin-polyfill-corejs3: 0.10.4(@babel/core@7.25.2)
+      babel-plugin-polyfill-corejs3: 0.10.6(@babel/core@7.25.2)
       babel-plugin-polyfill-regenerator: 0.6.2(@babel/core@7.25.2)
       semver: 6.3.1
     transitivePeerDependencies:
@@ -16940,7 +16953,7 @@ snapshots:
 
   '@babel/traverse@7.24.1':
     dependencies:
-      '@babel/code-frame': 7.24.7
+      '@babel/code-frame': 7.24.6
       '@babel/generator': 7.24.4
       '@babel/helper-environment-visitor': 7.24.6
       '@babel/helper-function-name': 7.24.6
@@ -17015,7 +17028,7 @@ snapshots:
       outdent: 0.5.0
       prettier: 2.8.8
       resolve-from: 5.0.0
-      semver: 7.6.3
+      semver: 7.5.4
 
   '@changesets/assemble-release-plan@6.0.3':
     dependencies:
@@ -17025,7 +17038,7 @@ snapshots:
       '@changesets/should-skip-package': 0.1.0
       '@changesets/types': 6.0.0
       '@manypkg/get-packages': 1.1.3
-      semver: 7.6.3
+      semver: 7.5.4
 
   '@changesets/changelog-git@0.2.0':
     dependencies:
@@ -17086,7 +17099,7 @@ snapshots:
       '@manypkg/get-packages': 1.1.3
       chalk: 2.4.2
       fs-extra: 7.0.1
-      semver: 7.6.3
+      semver: 7.5.4
 
   '@changesets/get-github-info@0.6.0':
     dependencies:
@@ -18485,9 +18498,11 @@ snapshots:
 
   '@lit-labs/ssr-dom-shim@1.2.0': {}
 
+  '@lit-labs/ssr-dom-shim@1.2.1': {}
+
   '@lit/reactive-element@1.6.3':
     dependencies:
-      '@lit-labs/ssr-dom-shim': 1.2.0
+      '@lit-labs/ssr-dom-shim': 1.2.1
 
   '@lit/reactive-element@2.0.4':
     dependencies:
@@ -20393,7 +20408,7 @@ snapshots:
       grapheme-splitter: 1.0.4
       ignore: 5.2.4
       natural-compare-lite: 1.4.0
-      semver: 7.6.3
+      semver: 7.3.8
       tsutils: 3.21.0(typescript@5.4.5)
     optionalDependencies:
       typescript: 5.4.5
@@ -20550,7 +20565,7 @@ snapshots:
       '@typescript-eslint/typescript-estree': 5.59.0(typescript@5.4.5)
       eslint: 8.57.0
       eslint-scope: 5.1.1
-      semver: 7.6.3
+      semver: 7.3.8
     transitivePeerDependencies:
       - supports-color
       - typescript
@@ -20579,7 +20594,7 @@ snapshots:
       '@typescript-eslint/types': 6.9.1
       '@typescript-eslint/typescript-estree': 6.9.1(typescript@5.4.5)
       eslint: 8.57.0
-      semver: 7.6.3
+      semver: 7.5.4
     transitivePeerDependencies:
       - supports-color
       - typescript
@@ -21945,7 +21960,7 @@ snapshots:
     transitivePeerDependencies:
       - supports-color
 
-  babel-plugin-polyfill-corejs3@0.10.4(@babel/core@7.25.2):
+  babel-plugin-polyfill-corejs3@0.10.6(@babel/core@7.25.2):
     dependencies:
       '@babel/core': 7.25.2
       '@babel/helper-define-polyfill-provider': 0.6.2(@babel/core@7.25.2)
@@ -22936,7 +22951,7 @@ snapshots:
       postcss-modules-scope: 3.0.0(postcss@8.4.40)
       postcss-modules-values: 4.0.0(postcss@8.4.40)
       postcss-value-parser: 4.2.0
-      semver: 7.6.3
+      semver: 7.3.8
       webpack: 5.88.0(esbuild@0.17.19)
 
   css-minimizer-webpack-plugin@3.4.1(esbuild@0.17.19)(webpack@5.88.0(esbuild@0.17.19)):
@@ -24455,6 +24470,8 @@ snapshots:
       node-domexception: 1.0.0
       web-streams-polyfill: 3.2.1
 
+  fflate@0.8.2: {}
+
   figures@3.2.0:
     dependencies:
       escape-string-regexp: 1.0.5
@@ -24602,7 +24619,7 @@ snapshots:
       memfs: 3.5.3
       minimatch: 3.1.2
       schema-utils: 2.7.0
-      semver: 7.6.3
+      semver: 7.3.8
       tapable: 1.1.3
       typescript: 5.4.5
       webpack: 5.88.0(esbuild@0.17.19)
@@ -25942,7 +25959,7 @@ snapshots:
 
   jest-message-util@27.5.1:
     dependencies:
-      '@babel/code-frame': 7.24.7
+      '@babel/code-frame': 7.24.6
       '@jest/types': 27.5.1
       '@types/stack-utils': 2.0.1
       chalk: 4.1.2
@@ -25954,7 +25971,7 @@ snapshots:
 
   jest-message-util@28.1.3:
     dependencies:
-      '@babel/code-frame': 7.24.7
+      '@babel/code-frame': 7.24.6
       '@jest/types': 28.1.3
       '@types/stack-utils': 2.0.1
       chalk: 4.1.2
@@ -26531,7 +26548,7 @@ snapshots:
 
   lit-element@3.3.3:
     dependencies:
-      '@lit-labs/ssr-dom-shim': 1.2.0
+      '@lit-labs/ssr-dom-shim': 1.2.1
       '@lit/reactive-element': 1.6.3
       lit-html: 2.8.0
 
@@ -26701,6 +26718,8 @@ snapshots:
 
   lru-cache@10.0.0: {}
 
+  lru-cache@10.2.0: {}
+
   lru-cache@10.4.3: {}
 
   lru-cache@4.1.5:
@@ -27890,7 +27909,7 @@ snapshots:
 
   parse-json@5.2.0:
     dependencies:
-      '@babel/code-frame': 7.24.7
+      '@babel/code-frame': 7.24.6
       error-ex: 1.3.2
       json-parse-even-better-errors: 2.3.1
       lines-and-columns: 1.2.4
@@ -27940,7 +27959,7 @@ snapshots:
 
   path-scurry@1.11.1:
     dependencies:
-      lru-cache: 10.4.3
+      lru-cache: 10.2.0
       minipass: 7.0.4
 
   path-to-glob-pattern@1.0.2: {}
@@ -28255,7 +28274,7 @@ snapshots:
       cosmiconfig: 7.1.0
       klona: 2.0.6
       postcss: 8.4.40
-      semver: 7.6.3
+      semver: 7.3.8
       webpack: 5.88.0(esbuild@0.17.19)
 
   postcss-logical@5.0.4(postcss@8.4.40):
@@ -29386,7 +29405,7 @@ snapshots:
 
   rollup-plugin-terser@7.0.2(rollup@2.79.1):
     dependencies:
-      '@babel/code-frame': 7.24.7
+      '@babel/code-frame': 7.24.6
       jest-worker: 26.6.2
       rollup: 2.79.1
       serialize-javascript: 4.0.0
@@ -29701,7 +29720,7 @@ snapshots:
 
   simple-update-notifier@2.0.0:
     dependencies:
-      semver: 7.6.3
+      semver: 7.5.4
 
   sirv@2.0.4:
     dependencies: