@Josip Skender Thanks for posting your question in Microsoft Q&A, apologize for any inconvenience caused on this.
- Are you deploying this python from visual studio code? or function core tools? or any other?
- Flex consumption apps support only Onedeploy deployment technology refer to this on how to deploy function to flex function using one deploy from vscode.
- Flex Consumption need the below app settings to run the function check and remove if there any other app setting present "DEPLOYMENT_STORAGE_CONNECTION_STRING","AzureWebJobsStorage", "APPLICATIONINSIGHTS_CONNECTION_STRING (if Application setting is enabled)"
- If you are deploying from vscode and still facing the issue I would suggest you to terminate/close existing vscode windows and run in admin mode, try deploying your functions.
Hope this helps, let me know if you have any further questions on this.