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Are you using Azure classic provider or Azure Native provider?

Pulumi Classic Provider
  using  Pulumi.Azure.AppService
      var functionApp = new FunctionApp(name, funcAppArgs);

I think you are using a deprecated resource. According to the documentation FunctionApp has been deprecated in favor of specific resources WindowsFunctionApp or LinuxFunctionApp that supports the latest dotnet framework

Any reason why you are using classic Azure instead of Azure Native by the way ?

Its Legacy Application we have not migrated yet