Referring to https://github.com/Azure/azure-functions-durable-js/issues/562 it seems that the issue is that latest version of function-durable package (3.1.0 currently) installed by default during step 9 of "Install the durable-functions npm package" is not compatible with version 2.x of the Azure Functions extension bundle which is installed by default on the Function App.
using:
npm install durable-functions@2.1.4
did the trick on my end (until when???)