This error appeared with visual studio 2022 v17.12.0 after this update VS installed and forcing the Azure Functions Tools v4.0.6517 by default and based on Microsoft documentations

So we have to solution to solve this issue, the first one is to Update Microsoft.NET.Sdk.Functions nuget package to be 4.5.0 and this will solve the issue, but what if you don't want to update this package at all, then you will need to downgrade the version of Azure Core Tools, so the following steps explains how to do it

1. Close the VS
2. Do manual installation for Core Tools v4.0.6280 (older version)
3. Copy the content of folder --> C:\ProgramFiles\Microsoft\Azure Functions Core Tools
4. Paste it to --> C:\Users\{your username}\AppData\Local\AzureFunctionsTools\Releases\4.104.0\cli_x64
5. Restart your PC or Laptop
6. Open the VS again and try to run any azure function, you will notice that the console is now showing the older version of the Core Tools.

I hope this answer may help someone.