"Storage account connection string 'AzureWebJobsStorage' does not exist." when starting Azure Function with Queue Trigger and AAD Identity

I also got the same error in my environment below,

I added below setting in function app> Environment variables> App settings as below,

AzureWebJobsStrorage__accountName : <storage_name>

I switched on the identity in function app at Azure portal as below,

I assigned the Storage Queue Data Contributor role to the function app in the storage account at the Azure portal as below,

And, I assigned the owner role to the newappk AAD app in the storage account at the Azure portal as below,

local.settings.json :

{
    "IsEncrypted": false,
  "Values": {
    "AzureWebJobsStorage": "UseDevelopmentStorage=true",
    "FUNCTIONS_WORKER_RUNTIME": "dotnet-isolated",
    "QueueConnection__queueServiceUri": "https://<storage_name>.queue.core.windows.net/"
  }
}

Code:

I tried a simple queue trigger code below,

using System;
using Azure.Storage.Queues.Models;
using Microsoft.Azure.Functions.Worker;
using Microsoft.Extensions.Logging;

namespace FunctionApp39
{
    public class Function1
    {
        private readonly ILogger<Function1> _logger;

        public Function1(ILogger<Function1> logger)
        {
            _logger = logger;
        }

        [Function(nameof(Function1))]
        public void Run([QueueTrigger("myqueue", Connection = "QueueConnection")] QueueMessage message)
        {
            _logger.LogInformation($"C# Queue trigger function processed: {message.MessageText}");
        }
    }
}

Output:

It runs successfully as below,

I added a message to the queue like below in the storage account at the Azure portal,

Then, I published this to function app as below,

I added the QueueConnection_queueServiceUri in the App setting below,

QueueConnection__queueServiceUri : "https://<storage_name>.queue.core.windows.net/"

Then, I sent a message to the queue and got it triggered in Application insights as below,

I can see the message in the monitor function also as below,