Azure App Service is a service used to create and deploy scalable, mission-critical web apps.
It turned out that Azure Environment Variable "WEBSITE_LOCAL_CACHE_OPTION" is not in effect although its value ("Always") is CORRECT. Simply restarting app service does not help.
I have to change its value from "Always" to "Disabled", restart app service;
then change it back to "Always" and restart app service again in order to make this cache option in effect again.
This is really weird. I am pretty sure this environment variable worked before. Another Azure Tech support helped me to set it in 2024. We never change it since then.