Note: This question is part of a series of questions that present the same scenario.

Azure Functions application settings are the correct mechanism for keeping environment-specific configuration outside the application source code. Microsoft documents that application settings, including connection strings and other configuration values, are defined separately for each function app . This allows development, test, staging, and production deployments to use different values without modifying the application code.

At runtime, Function app settings are exposed to the application as environment variables , so code can retrieve the required connection string or configuration value without embedding it in a configuration file committed to source control. This directly satisfies the requirement to prevent secrets from being stored in the Git repository.

For production-grade secret management, Azure Key Vault references are often preferable because they provide centralized secret lifecycle management and can be combined with managed identities. However, the question asks only whether the proposed solution meets the stated goals. Storing connection strings in Azure Function application settings does satisfy both: values can vary by deployed environment and remain outside source-controlled application files.

Study Guide references: Azure Functions configuration; application settings; environment variables; secure application configuration.

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