No issues here 
well, the problem could be your project structure.

The default one - on the root level of the config folder - is the one which is used for the staging and production stages. Both stages has their own MySQL Database and both will be deployed as a docker container. Here how it looks…

My Configuration within the App Service looks like the following…
The Docker File in the linked project, is copying everything to the destination. In my case I am only copying selected folders/files to the destination.
FROM node:14-alpine
ENV PORT 1337
ENV HOST 0.0.0.0
ENV NODE_ENV production
# Create app directory
RUN mkdir -p /usr/src/app
WORKDIR /usr/src/app
# Install app dependencies
COPY package*.json /usr/src/app/
COPY yarn.lock /usr/src/app/
RUN yarn install
COPY ./api /usr/src/app/api
COPY ./components /usr/src/app/components
COPY ./extensions /usr/src/app/extensions
COPY ./config /usr/src/app/config
COPY ./public /usr/src/app/public
COPY ./nc /usr/src/app/nc
COPY favicon.ico /usr/src/app/
# Bundle app source
#COPY . /usr/src/app
RUN yarn build
EXPOSE 1337
CMD ["yarn", "start"]
That is how it works for me, I got it also to work as a plain nodejs deployment, but this runs as also as a docker container at the end, bc of that I didn´t wrote something about that. If someone is interested here is the Build pipeline:
# Node.js
# Build a general Node.js project with npm.
# Add steps that analyze code, save build artifacts, deploy, and more:
# https://docs.microsoft.com/azure/devops/pipelines/languages/javascript
trigger:
- master
resources:
- repo: self
variables:
tag: '$(Build.BuildId)'
# Agent VM image name
vmImageName: 'ubuntu-latest'
stages:
- stage: Package
displayName: Create NodeJS Package & upload as artifact
jobs:
- job: Package
displayName: Package
pool:
vmImage: $(vmImageName)
steps:
- task: Bash@3
displayName: Build strapi package
inputs:
targetType: 'inline'
script: |
yarn install
yarn add lodash
rm -rf .cache
rm -rf .git
rm -rf exports
rm -rf build
rm -rf .devcontainer
rm -rf run.sh
rm -rf README.md
rm -rf migrate-*
rm -rf Dockerfile*
rm -rf docker-entr*
rm -rf .dockerignore
rm -rf *.code-workspace
rm -rf azure-pipe*
rm -rf .gitignore
rm -rf .es*
rm -rf .editorconfig
rm -rf .strapi-updater.json
rm -rf yarn.lock
- task: ArchiveFiles@2
displayName: Create zip package
inputs:
rootFolderOrFile: './'
includeRootFolder: false
archiveType: 'zip'
archiveFile: '$(Build.ArtifactStagingDirectory)/$(Build.BuildId)_plain.zip'
replaceExistingArchive: true
- task: PublishBuildArtifacts@1
displayName: Upload as Artifact
inputs:
PathtoPublish: '$(Build.ArtifactStagingDirectory)'
ArtifactName: 'drop'
publishLocation: 'Container'
Here the release config:
I hope I could help

