Azure App Service is a service used to create and deploy scalable, mission-critical web apps.
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The --html flag defaults to Windows OS and as a workaround, you can add a package.json file the root directory and remove the --html arg. This will tell the CLI to upload as a nodejs runtime.
You may refer to below blog link for more details on this: https://github.com/Azure/app-service-linux-docs/blob/master/AzWebAppUP/runtime_detection.md