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FWIW, the exported ARM template (from the containerized app service) shows `linuxFxVersion` in the format #1 above.
However trying that in the pulumi script didn't work.

Yes, both `kind: 'Linux'` and `reserved: true` have been set on the app service plan

And here is the snippet for the containerized app service

Option 1 LGTM - we use it in <https://github.com/pulumi/examples/blob/93e323cb9a70ab3aafa88333925db5d720ab08c6/azure-ts-appservice-springboot/infrastructure/index.ts>

Thanks for sharing the sample! My app settings was missing the `DOCKER_REGISTRY_SERVER_URL` property. Issue resolved now, thanks :+1: