Indeed Azure functions ignore web.config
files. Currently there is no other way to set AssemblyReference
You can try with the following solution provided it the Feature Request: app.config in azure functions #354
thread. I copy and paste the last paragraph of the post by user grammophone
that suggests the workaround:
"I solved the problem of running my existing logic layer objects in Azure functions by delegating the work into a different AppDomain which has an App.config associated with it, and created the necessary cross-AppDomain communication."
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