@Chandrakant Pawle Thank you for posting your question in Microsoft Q&A, apologize for any inconvenience caused on this.
Mitigation or Workaround steps:
- If you are using application scope credentials to FTP to app service, then make sure that both SCM Basic Auth Credentials and FTP Basic Auth Credentials are enabled and also FTP state to FTPS only.
- If you are facing any issue while following the step1, then I would suggest you try connecting to FTP through user scope credentials.
Update:
Our engineering team has investigated the issue and identified a bug in connecting to FTP service using application scope credentials.
They are working on fix and fix will be rolled out in next release. If any other customers are facing the issue I would suggest you follow the above steps to connect to app service using FTP.
Let me know if you are facing any issue or if you have any further questions on this.