Deploy to web app does not working for .NET 8 and Linux based deployment - azure/webapps-deploy@v3

We are using GitHub Action for deploying to Azure Web App verison 3 - azure/webapps-deploy@v3. Detail about our WebApp:

Dotnet SDK version: .NET 8 - dotnet-version: 8.x Platform: Linux

Below steps in our workflow not working:

- uses: azure/webapps-deploy@v3
      id: deploy-to-webapp
      with:
        app-name: ${{ vars.PP_NAME }}
        package: ${{ steps.download-artifact.outputs.download-path }}
        clean: false
        restart: false

Using azure/webapps-deploy@v3 - Github action getting below error:

##[debug]Initiated deployment via kudu service for webapp package : /home/runner/work/_temp/temp_web_package_7365615165970218.zip
Package deployment using OneDeploy initiated.
##[debug]setting affinity cookie ["ARRAffinity=*******;Path=/;HttpOnly;Secure;Domain=******.scm.azurewebsites.net","ARRAffinitySameSite=*****;Path=/;HttpOnly;SameSite=None;Secure;Domain=******.scm.azurewebsites.net"]
##[debug][POST] https://*******.scm.azurewebsites.net/api/publish?async=true&deployer=GITHUB_ONE_DEPLOY&type=zip&clean=false&restart=false&message=_______slotName%22%3A%22production%22%2C%22commitMessage_____
##[debug]encountered request timedout issue in Kudu. Retrying again
******
Error: Failed to deploy web package to App Service.
Error: Deployment Failed, Error: Failed to deploy web package using OneDeploy to App Service.
Conflict (CODE: 409)

As a workaround, we have tried by directly executing PowerShell command, but its also not working - by creating zip and provided zip file to deploy using Publish-AzWebApp PS command:

   - name: Create Zip
      shell: pwsh
      run: Compress-Archive -Path ${{ steps.download-artifact.outputs.download-path }} -Destinationpath ./myWebApp.zip

    - name: Run Azure PowerShell inline script
      uses: azure/powershell@v1
      with:
        inlineScript: |
          Publish-AzWebApp -ResourceGroupName ${{ vars.RG_NAME }} -Name ${{ vars.WEBAPP_NAME }} -ArchivePath ./myWebApp.zip -Timeout 1000000 -Confirm:$false -Force
        azPSVersion: "latest"

Using PowerShell command, its giving below error:

/usr/bin/pwsh -NoLogo -NoProfile -NonInteractive -Command $env:PSModulePath
/usr/share:/home/runner/.local/share/powershell/Modules:/usr/local/share/powershell/Modules:/opt/microsoft/powershell/7/Modules
Initializing Az Module Complete
Running Az PowerShell Script
/usr/bin/pwsh -NoLogo -NoProfile -NonInteractive -Command /home/runner/work/_temp/*****.ps1
Publish-AzWebApp: /home/runner/work/_temp/*****.ps1:2
Line |
   2 |  Publish-AzWebApp -ResourceGroupName rg-test -Name a …
     |  ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
     | Deployment failed with status code GatewayTimeout
Error: Error: The process '/usr/bin/pwsh' failed with exit code 1

It seems, there is an issue while deploying .NET 8 - ASP.NET Core Web application to Linux based App Service. Any workaround or solution will be helpful.

Checked /wwwroot directory using bash shell as well but it also empty.

We are getting something similar when we try to use github actions

[debug]Loading env

Run Azure/functions-action@v1 Successfully parsed SCM credential from publish-profile format. ::add-mask:: ::add-mask::

[debug]Finding files matching input: .

Using SCM credential for authentication, GitHub Action will not perform resource validation.

[debug][GET] ***ed-content-to-brightsites-dev.scm.azurewebsites.net/api/settings

(node:1739) [DEP0005] DeprecationWarning: Buffer() is deprecated due to security and usability issues. Please use the Buffer.alloc(), Buffer.allocUnsafe(), or Buffer.from() methods instead. (Use node --trace-deprecation ... to show where the warning was created)

[debug]getAppSettings. Data: {"statusCode":401,"statusMessage":"Unauthorized","headers":{"content-length":"0","connection":"close","date":"Wed, 15 May 2024 16:15:07 GMT","www-authenticate":"Basic realm=\"site\""},"body":""}

Error: Execution Exception (state: ValidateAzureResource) (step: Invocation) Error: When request Azure resource at ValidateAzureResource, Get Function App Settings : Failed to acquire app settings from https:///api/settings with publish-profile Error: Failed to fetch Kudu App Settings. Unauthorized (CODE: 401) Error: Error: Failed to fetch Kudu App Settings. Unauthorized (CODE: 401) at Kudu. (/home/runner/work/_actions/Azure/functions-action/v1/lib/appservice-rest/Kudu/azure-app-kudu-service.js:69:23) at Generator.next () at fulfilled (/home/runner/work/_actions/Azure/functions-action/v1/lib/appservice-rest/Kudu/azure-app-kudu-service.js:5:58) at processTicksAndRejections (node:internal/process/task_queues:96:5) Error: Deployment Failed!

Azure / actions-workflow-samples