@Ryan McGee Thank you for your reply! I did some more research and found out that -
The 404s are caused by enabling Automatic Scaling and pinging the same endpoint for both Function Apps and Web Apps.
The issue of 404s to the /admin/host/ping endpoint is expected behavior as this feature is still in Preview. It will not affect scale-out. Only the status code 429 will impact scale-out. Otherwise, scale-out is determined by latency.
This issue will be fixed in a future release, which will reduce the noise.
In the meantime, the 404s should not have any negative effect on scaling, except for the noise. These pings are also not a security risk for the app, as they come from the same scale unit that hosts the app.
I hope this helps.
Please let us know if further query on this.