It will not be lost if you application files located in the wwwroot folder.We could get the answer from the document.
Persisted files
This is what you can view as your web site's files. They follow a structure described here. They are rooted in d:\home, which can also be found using the %HOME% environment variable.
These files are persistent, meaning that you can rely on them staying there until you do something to change them. Also, they are shared between all instances of your site (when you scale it up to multiple instances). Internally, the way this works is that they are stored in Azure Storage instead of living on the local file system.
Free and Shared sites get 1GB of space, Basic sites get 10GB, and Standard sites get 50GB
Temporary files
A number of common Windows locations are using temporary storage on the local machine. For instance
%APPDATA% points to something like D:\local\AppData.
%TMP% goes to D:\local\Temp.
Unlike Persisted files, these files are not shared among site instances. Also, you cannot rely on them staying there. For instance, if you restart a web app, you'll find that all of these folders get reset to their original state.
For Free, Shared and Consumption (Functions) sites, there is a 500MB limit for all these locations together (i.e. not per-folder). For Standard and Basic sites, the limit is very high (over 100GB).