diff --git a/README.md b/README.md
index 24046c8..22a6298 100644
--- a/README.md
+++ b/README.md
@@ -50,7 +50,7 @@ The plugin can be found on [npm here](https://www.npmjs.com/package/@netlify/plu
   - [Using Netlify Identity](#using-netlify-identity)
 - [Caveats](#caveats)
   - [Fallbacks for Pages with `getStaticPaths`](#fallbacks-for-pages-with-getstaticpaths)
-  - [next/image](#next/image)
+  - [next/image](#nextimage)
 - [Credits](#credits)
 - [Showcase](#showcase)
 
diff --git a/lib/helpers/handleFileTracking.js b/lib/helpers/handleFileTracking.js
index 8cc1465..5f19283 100644
--- a/lib/helpers/handleFileTracking.js
+++ b/lib/helpers/handleFileTracking.js
@@ -3,8 +3,9 @@ const {
   existsSync,
   readdirSync,
   readFileSync,
-  writeFileSync,
+  rmdirSync,
   removeSync,
+  writeFileSync,
 } = require("fs-extra");
 const findCacheDir = require("find-cache-dir");
 const { NETLIFY_PUBLISH_PATH, NETLIFY_FUNCTIONS_PATH } = require("../config");
@@ -18,6 +19,7 @@ const handleFileTracking = ({ functionsPath, publishPath }) => {
   const isConfiguredPublishDir = publishPath !== NETLIFY_PUBLISH_PATH;
 
   const cacheDir = findCacheDir({ name: "next-on-netlify", create: true });
+  if (!cacheDir) return () => {};
   const trackingFilePath = join(cacheDir, ".nonfiletracking");
 
   if (existsSync(trackingFilePath)) {
@@ -25,11 +27,13 @@ const handleFileTracking = ({ functionsPath, publishPath }) => {
     const [trackedFunctions, trackedPublish] = trackingFile.split(
       TRACKING_FILE_SEPARATOR
     );
-
     const cleanConfiguredFiles = (trackedFiles, dirPath) => {
       trackedFiles.forEach((file) => {
-        const filePath = join(dirPath, file);
-        if (file !== "" && existsSync(filePath)) {
+        const filePath = join(dirPath, file.trim("\r"));
+        if (file !== "") {
+          if (process.platform === "win32") {
+            rmdirSync(filePath, { recursive: true });
+          }
           removeSync(filePath);
         }
       });
diff --git a/tests/fixtures/.nonfiletracking b/tests/fixtures/.nonfiletracking
index 7613bf6..3381d44 100644
--- a/tests/fixtures/.nonfiletracking
+++ b/tests/fixtures/.nonfiletracking
@@ -1,2 +1,3 @@
 next_shows_id
+next_image.js
 ---
diff --git a/tests/fixtures/my-functions/next_image.js b/tests/fixtures/my-functions/next_image.js
new file mode 100644
index 0000000..e69de29