For your needs, the answer is YES! Azure functions can use appsettings.json for your configurations. But there is a sequencing sequence that Azure will execute when the function is requested.
1º) Azure will look for this KEYS that you used in .GetEnvironmentVariables ("[ KEY ]") using the keys that were configured on the app settings click in Azure Function Settings
2º) If Azure could not find out which configurations using the Application Settings keys, Azure will try to find the appsettings.json file in your root folder of the function you are working on.
3º) Finally, if Azure could not find these keys either in the application settings or in the appsettings.json file, then Azure will make its last attempt to find web.config to search in this appsettings file.
For your assessment, you will be able to learn these configurations from the model in my github registry: here and here
I hope this information helps you.
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