For deployment by CLI func azure functionapp publish
Function core tools use zip deployment to deploy functions, in this way, kudu doesn't build project by default. To enable the feature, set SCM_DO_BUILD_DURING_DEPLOYMENT to true in Application settings on portal.
As for why the default setting is false, zip deployment usually requires the content to be deployed including all related files hence there's no need to build again.
For Azure function core tools, we usually use command func extensions install to register extensions for input/output binding when extensions are not installed automatically like we create trigger from template. This is why command func start and func azure functionapp publish doesn't build extensions.csproj, extensions are supposed to be installed before we run or publish functions.
Update for DevOps deployment
With Azure pipeline, we need to build extensions.csporj before archive files. Add a .NET Core build task, arguments are -o bin.
If you want kudu to build project, go to Deployment Center under Platform features. Choose VSTS as a CI repository and kudu will build and deploy project for you.
<PackageReference Include="Microsoft.Azure.WebJobs.Extensions.Http" Version="3.0.0" /> <PackageReference Include="Microsoft.Azure.WebJobs.Extensions.Storage" Version="3.0.0" /> <PackageReference Include="Microsoft.Azure.WebJobs.Script.ExtensionsMetadataGenerator" Version="1.0.0" />- Ramon