WEBSITE_RUN_FROM_PACKAGE set to 1 but expect an URL for a Linux app on Standard Plan

We want to upgrade some Azure functions to use dedicated App Service Plan instead of dynamic Consumption Plan.

Terraform deployed Azure Function to App Service Plan/Consumption Plan correctly with ‘WEBSITE_RUN_FROM_PACKAGE’ set to the storage account URL where the code package uploaded. However, it sets ‘WEBSITE_RUN_FROM_PACKAGE’ to 1 when we switched App Service Plan from Consumption to Standard. As a result, the function no longer works. Can someone advise how should we correct the issue?

The app is developed in Rust, built locally and published to Azure Function using Azure Function tool func azure functionapp publish $functionapp --build local --custom