The issue is now resolved and consisted of two parts -
First off - the EFS mount point directory (/var/jenkins_home) required permissions of 777, it doesn't need to be a recursive permission.
The new EFS disk had content migrated from the old Jenkins EFS and this was also contributing to this issue. The fix was to not transfer any content from the old EFS to the new EFS via the backup.tar.gz feature. The new Jenkins is working as expected with npm install.
Dockerfile pulled from - https://hub.docker.com/r/jenkins/jenkins/
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