I understand the inconvenience with this issue. Apologies for any trouble!
It’s being tracked on VS repo, as mentioned –“until a fix is released in VS Code stable (hopefully the next major release)”.
4 -options are outlined for the fix (downgrading VS code version, is one of the option).
https://github.com/microsoft/vscode-azurefunctions/issues/2844#issuecomment-1089619666
https://github.com/microsoft/vscode-azurefunctions/issues/3098#issuecomment-1090532374
(copied the suggested options below to benefit the community)
- Wait for the fix to come in VS Code Insiders
- Deploy via Azure CLI
- Downgrade your Azure Functions extension version to 1.2.1 (Feb 08, 2021), we used a different zip deploy method which seems to be working still. Note: it might not work in environments like WSL or Codespaces, which is why we changed our deploy in 1.3.0 (Mar 15, 2021).
- Downgrade to the VS Code February 2022 release, where zip deploy is working as discussed and confirmed above.
Thanks for your patience!