Azure Functions – Error with FUNCTIONS_INPROC_NET8_ENABLED while using .NET 6 and Azure Functions Core Tools in Visual Studio 2022

I am trying to run a function app written in C# locally in Visual Studio Professional 2022. But, I am getting the following error..

FUNCTIONS_INPROC_NET8_ENABLED app setting is not enabled in local.settings.json
Selected inproc6 host.
This version of the Azure Functions Core Tools requires your project to reference version 4.5.0 or later of Microsoft.NET.Sdk.Functions. Please update to the latest version. For more information, see: https://aka.ms/functions-core-tools-in-proc-sdk-requirement

The project file settings are as follows,

    <PropertyGroup>
        <TargetFramework>net6.0</TargetFramework>
        <AzureFunctionsVersion>v4</AzureFunctionsVersion>
    </PropertyGroup>
    <ItemGroup>
      <None Remove="appSettings.Production.json" />
    </ItemGroup>
    <ItemGroup>
        <Content Include="local.settings.json">
            <CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
            <ExcludeFromSingleFile>true</ExcludeFromSingleFile>
            <CopyToPublishDirectory>PreserveNewest</CopyToPublishDirectory>
        </Content>
        <Content Include="appsettings.Development.json">
            <CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
            <ExcludeFromSingleFile>true</ExcludeFromSingleFile>
            <CopyToPublishDirectory>PreserveNewest</CopyToPublishDirectory>
        </Content>
        <Content Include="appsettings.json">
            <CopyToOutputDirectory>Always</CopyToOutputDirectory>
            <ExcludeFromSingleFile>true</ExcludeFromSingleFile>
            <CopyToPublishDirectory>PreserveNewest</CopyToPublishDirectory>
        </Content>
    </ItemGroup>
    <ItemGroup>
        <PackageReference Include="Microsoft.Azure.DurableTask.Core" Version="2.17.1" />
        <PackageReference Include="Microsoft.Azure.Functions.Extensions" Version="1.1.0" /> 
        <PackageReference Include="Microsoft.Azure.WebJobs.Extensions" Version="5.0.0" /> 
        <PackageReference Include="Microsoft.Azure.WebJobs.Extensions.DurableTask" Version="2.13.4" /> 
        <PackageReference Include="Microsoft.Azure.WebJobs.Logging.ApplicationInsights" Version="3.0.35" /> 
        <PackageReference Include="Microsoft.Extensions.Configuration.Abstractions" Version="6.0.0" />
        <PackageReference Include="Microsoft.Extensions.DependencyInjection" Version="7.0.0" />
        <PackageReference Include="Microsoft.Extensions.Logging" Version="6.0.0" />
        <PackageReference Include="Microsoft.Extensions.Logging.Abstractions" Version="6.0.1" />
        <PackageReference Include="Microsoft.Extensions.Options" Version="7.0.1" />
        <PackageReference Include="Microsoft.NET.Sdk.Functions" Version="4.1.3" />
        <PackageReference Include="SendGrid.Extensions.DependencyInjection" Version="1.0.1" />
        <PackageReference Include="Serilog.AspNetCore" Version="5.0.0" />
        <PackageReference Include="Serilog.Enrichers.Process" Version="2.0.2" />
        <PackageReference Include="Serilog.Enrichers.Thread" Version="3.1.0" />
        <PackageReference Include="Serilog.Extensions.Logging" Version="3.1.0" />
        <PackageReference Include="Serilog.Settings.Configuration" Version="3.3.0" />
        <PackageReference Include="Serilog.Sinks.ApplicationInsights" Version="4.0.0" />
        <PackageReference Include="Serilog.Sinks.MSSqlServer" Version="5.7.0" />
        <PackageReference Include="System.Configuration.ConfigurationManager" Version="6.0.0" />
        <PackageReference Include="System.Data.SqlClient" Version="4.8.6" />
        <PackageReference Include="System.Text.Encodings.Web" Version="7.0.0" />
        <PackageReference Include="System.Text.Json" Version="7.0.2" />
    </ItemGroup>
    <ItemGroup>
        <ProjectReference Include="..\RailAPI.Data\RailAPI.Data.csproj" />
        <ProjectReference Include="..\RailAPI.Services\RailAPI.Services.csproj" />
        <ProjectReference Include="..\RailAPI.Workers\RailAPI.Workers.csproj" />
    </ItemGroup>
    <ItemGroup>
        <None Update="host.json">
            <CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
        </None>
    </ItemGroup>
    <ItemGroup>
        <FunctionsPreservedDependencies Include="Microsoft.Extensions.Caching.Abstractions.dll" />
        <FunctionsPreservedDependencies Include="Microsoft.Extensions.DependencyModel.dll" />
        <FunctionsPreservedDependencies Include="Microsoft.Extensions.DependencyInjection.dll" />
        <FunctionsPreservedDependencies Include="System.Text.Json.dll" />
    </ItemGroup>
    <ItemGroup>
      <Page Include="appsettings.Production.json" />
      <Page Include="local.settings.json" />
    </ItemGroup>
    <Target Name="FunctionsPostBuildDepsCopy" AfterTargets="PostBuildEvent">
        <Copy SourceFiles="$(OutDir)$(AssemblyName).deps.json" DestinationFiles="$(OutDir)bin\$(AssemblyName).deps.json" />
    </Target>
    <Target Name="FunctionsPublishDepsCopy" AfterTargets="Publish">
        <Copy SourceFiles="$(OutDir)$(AssemblyName).deps.json" DestinationFiles="$(PublishDir)bin\$(AssemblyName).deps.json" />
    </Target>
    <ItemGroup>
        <None Update="local.settings.json">
            <CopyToOutputDirectory>Never</CopyToOutputDirectory>
        </None>
    </ItemGroup>

</Project>

The local.settings.json file settings are as follows,

{
  "IsEncrypted": false,
  "Values": {
    "AzureWebJobsStorage": "UseDevelopmentStorage=true",
    "FUNCTIONS_WORKER_RUNTIME": "dotnet"
  }
}

How can we resolve this issue?