If your functions source code folder contains symlinks, then the action will zip the folder - preserving but not resolving the symlinks. But the azure functions runtime doesn't support symlinks (in a zip deployment at least), so this fails to resolve then at runtime.
I tried to track it down, and replacing
https://github.com/microsoft/pipelines-appservice-lib/blob/741329b4a3e150978e78346323fba635f4b2c0e2/src/Utilities/zipUtility.ts#L41
with something like glob("**/*", { cwd: folderPath, nodir: true, dot: true, follow: true }) (note the follow arg) should work.
If your functions source code folder contains symlinks, then the action will zip the folder - preserving but not resolving the symlinks. But the azure functions runtime doesn't support symlinks (in a zip deployment at least), so this fails to resolve then at runtime.
I tried to track it down, and replacing
https://github.com/microsoft/pipelines-appservice-lib/blob/741329b4a3e150978e78346323fba635f4b2c0e2/src/Utilities/zipUtility.ts#L41
with something like
glob("**/*", { cwd: folderPath, nodir: true, dot: true, follow: true })(note thefollowarg) should work.