@Bhargav Butani We understand you are having issues with your deployments due to receiving an error about lack of space.
Can you please verify what method you are using to deploy your web app?
In the past we have seen customers use zip deploy as a workaround.
To perform a storage zip deployment. Zip the app content and add it to the storage account and specify the Zip SAS url in the WEBSITE_RUN_FROM_PACKAGE appsetting of the app.
We look forward to your reply.