I'll answer my own question, I also failed to create one from Visual Studio, and this time I have error message and a link to refer to.
https://github.com/Azure/Azure-Functions/wiki/Creating-Function-Apps-in-an-existing-Resource-Group
This is the link and now I understand why is this happening better. I already have a resource group and a web app, it's not allowed to create another function app in this resource group.