Thank you for your response above. I was able to reproduce this issue at my end as well.
I spoke with the team internally and they validated that currently Azure Front Door doesn’t support revalidation based on Etag. The team is aware of the feature request, and it is in discussions stage, and we do not have a fixed ETA for it yet.
Just replying to your question above.
We are using Azure Front Door Standard. We don't see an option to set the cache behavior to Honor Origin. Do we have to set this in a rule set in order for the cache to work?
Cache Behavior option is present in the rule set, you can set this behavior for any specific route. For example, as shown below.
Hope this helps! Please let me know if you have any additional questions. Thank you!
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