We had the same issue from morning of Oct 27th until afternoon of Oct 30th - from our engagement with support we were informed of the following finding today (Nov 6th):
The Microsoft Azure Team has investigated the issue you reported on Python App Service resources crashing when using grpc while using application insights. This issue was found to be caused by the version of "grpcio" installed by our application insights agent. Upon investigation, engineers discovered that an incompatible version of "grpcio" was installed by the system for some of the python versions. Our engineers mitigated this issue by removing that "grpcio" dependency from the application insights agent.
Hope this helps clarify what happened for you.