Hot Reload not working when debugging with F5 (Python)

I'm developing an Azure Durable Functions application using VS Code and the Python V2 model. I use the default debug configuration to run the application (I press F5).

When changing code while the application is running, the application exits. You can see that in the screenshot below.

• Just before the red ❌ the application has started and accepts requests.
• At the ❌ I change a line of code in function_app.py and the application exits.

However, when I decide to manually run application with func host start --language-worker -- "-m debugpy --listen 127.0.0.1:9091" then any code changes simply reload the application. This saves about a minute of time compared to launching via F5 again.

I believe that the behaviour was different about half a year ago where it was also hot reloading when the application was launched via F5. Could this be looked at, please?

Start by comparing the default VS Code F5 debug configuration with the manual func host start --language-worker -- "-m debugpy --listen 127.0.0.1:9091" entry point. Reproduce the exit after editing function_app.py, then trace how the extension launches the Python V2 Azure Functions host. Done means code changes reload under F5 without exiting the application.