Regarding your UPDATE 3

the error message is clear that jwt package is not installed. say if you already have it in the requirements.txt

then the issue is the github yamp pipeline. the build step activated virtual env and installed packages into the virtual env. however, your zip step excludes these venv/*. this is the reason the python packages do not exist when you invoke the http trigger.

     - name: Create and start virtual environment
        run: |
          python -m venv venv
          source venv/bin/activate

      - name: Install dependencies
        run: pip install -r requirements.txt

      # Optional: Add step to run tests here

      - name: Zip artifact for deployment
        run: zip -r release.zip function_app.py host.json -x "*.txt venv/*" ".git/*" ".github/* *.md .gitignore local.*"

Deploy python function app to Azure via CMD

there are a few ways to deploy, we can use this method to test it out first:

• go to root of the project
• delete .venv folder. this is to speed up package time, we dont need virtual env for azure function. otherwise the whole folder will be zip and unzip and causes issues.
• run func azure functionapp publish <function app name>
• watch the log. it should upload files, and do a remote build

once completed, go to the deployment tab under function app to see the final status to be sure:

it might take 30 seconds for the function to show up in the overview page

Deploy python function app to Azure via GitHub

once working, you can refer to this guide to setup github action to deploy via pipeline.

https://learn.microsoft.com/en-us/azure/azure-functions/functions-how-to-github-actions?tabs=linux%2Cpython&pivots=method-manual