Hello,
When using the Consumption or Premium hosting plan, your function code and binding configuration files are stored in Azure Files in the main storage account. This content is deleted and cannot be recovered if the main storage account is deleted
You could storeyour application data in the function storage but it is generally reccommanded that you use a separated storage to store your application data.
This separation is especially important if your function app is generating a high volume of storage transactions or if you want to ensure that access to your function app's storage account is highly controlled.
https://learn.microsoft.com/en-us/azure/azure-functions/storage-considerations?tabs=azure-cli
**
Note that part of this answer has been assisted by OpenAI : Chat-GPT 4**
Hope this helps
Regards