Sebastian Gontkovic Thanks for posting your question in Microsoft Q&A. From the description above, it appears that you are facing an issue with vscode-azure functions extension. For all issues related to this extension, please file an issue via https://github.com/microsoft/vscode-azurefunctions/issues and this is right place to investigate and track it.
Please let me know once you posted with all the details. I will follow up and engage on the issue accordingly.
Update for the community:
Please follow https://github.com/microsoft/vscode-azurefunctions/issues/3904#issue-2001503527 issue for more details regarding this issue.