Saikiran Sheshagiri Thanks for posting your question in Microsoft Q&A. Based on the error message, you are using incompatible node.js version V20.1.0 and here is the doc for your reference Supported versions.
We are yet to support node 20 in Azure Functions and suggest you track items Support Node 20 and Request for: Node.js Version 20 support for latest updates.
I hope this helps and let me know if you have any questions.
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