Getting an Error while Upgrading a Contract

Hi everyone,

I'm trying to upgrade my contract but getting the error below:

The error:
"TypeError: Cannot read properties of undefined (reading 'upgradeProxy')"

My deploy script for version 1:

import {HardhatRuntimeEnvironment} from 'hardhat/types';
import {DeployFunction} from 'hardhat-deploy/types';

const func: DeployFunction = async function (hre: HardhatRuntimeEnvironment) {
  //let wei = ethers.utils.parseEther('300000000')
  const {deployments, getNamedAccounts} = hre;
  const {deploy} = deployments;

  const {deployer} = await getNamedAccounts();

  await deploy('NVMToken', {
    contract: 'NVMToken',
    from: deployer,
    proxy: {
      owner: deployer,
      proxyContract: 'OpenZeppelinTransparentProxy',
      execute: {
        init: {
          methodName: '__initializeNVM',
          args: ['300000000000000000000000000'],
    log: true,
export default func;
func.tags = ['NVMToken'];

Here is my upgrade script:

const { ethers, upgrades } = require("hardhat");

const UPGRADEABLE_PROXY = "0x9fE46736679d2D9a65F0992F2272dE9f3c7fa6e0"; //NVMToken_Proxy

async function main() {
   const V2Contract = await ethers.getContractFactory("NVMTokenV2");
   console.log("Upgrading V1Contract...");
   let upgrade = await upgrades.upgradeProxy(UPGRADEABLE_PROXY, V2Contract);
   console.log("V1 Upgraded to V2");
   console.log("V2 Contract Deployed To:", upgrade.address)

  .then(() => process.exit(0))
  .catch((error) => {

The steps that I followed;
1- I executed npx hardhat node --show-accounts
2- I executed npx hardhat run scripts/upgrade.js --network localhost with the address of Proxy contract. (Getting the error here)

The codes are here:

Share your hardhat config.