ARM Incremental deployment mode

Consider I have an Azure Function App with some app settings and some functions created via the following YAML task:

 - task: AzureResourceManagerTemplateDeployment@3
  displayName: 'deploy resources'
  inputs:
    azureResourceManagerConnection: azureResourceManagerConnection
    subscriptionId:subscriptionId
    resourceGroupName: rg
    location:location
    csmFile: template.bicep
    csmParametersFile:parameters.json              
    deploymentMode: 'Incremental'

Let’s say I modified app settings.

If I run the above YAML task in Incremental deployment mode, does that recreate the Azure Function App with the modified app settings and functions or does it just update the app settings - Function app and existing functions stay the same?

Here is how my template.bicep looks like:

var appSettings = [
  {
    name: 'WEBSITE_ADD_SITENAME_BINDINGS_IN_APPHOST_CONFIG'
    value: 1
  }
  {
    name: 'WEBSITE_ENABLE_SYNC_UPDATE_SITE'
    value: 1
  }
  {
    name: 'SCM_TOUCH_WEBCONFIG_AFTER_DEPLOYMENT'
    value: 0
  }
  {
    name: 'APPINSIGHTS_INSTRUMENTATIONKEY'
    value: reference(resourceId(appInsightsResourceGroup, 'microsoft.insights/components/', appInsightsName), '2015-05-01').InstrumentationKey
  }
  {
    name: 'AzureWebJobsStorage'
    value: 'DefaultEndpointsProtocol=https;AccountName=${storageAccountName};AccountKey=${listKeys(resourceId(storageAccountResourceGroup, 'Microsoft.Storage/storageAccounts', storageAccountName), providers('Microsoft.Storage', 'storageAccounts').apiVersions[0]).keys[0].value}'
  }
  {
    name: 'WEBSITE_CONTENTAZUREFILECONNECTIONSTRING'
    value: 'DefaultEndpointsProtocol=https;AccountName=${storageAccountName};AccountKey=${listKeys(resourceId(storageAccountResourceGroup, 'Microsoft.Storage/storageAccounts', storageAccountName), providers('Microsoft.Storage', 'storageAccounts').apiVersions[0]).keys[0].value}'
  }
  {
    name: 'FUNCTIONS_WORKER_RUNTIME'
    value: 'dotnet'
  }
  {
    name: 'FUNCTIONS_EXTENSION_VERSION'
    value: '~4'
  }
  {
    name: 'WEBSITE_MAX_DYNAMIC_APPLICATION_SCALE_OUT'
    value: maximumElasticWorkerCount
  }
  {
    name: 'appConfigurationEndpoint'
    value: appConfigurationEndpoint
  }
  {
    name: 'membershipStorageAccountName'
    value: '@Microsoft.KeyVault(SecretUri=${reference(membershipStorageAccountName, '2019-09-01').secretUriWithVersion})'
  }
  {
    name: 'membershipContainerName'
    value: '@Microsoft.KeyVault(SecretUri=${reference(membershipContainerName, '2019-09-01').secretUriWithVersion})'
  }
]

var stagingSettings = [
  {
    name: 'WEBSITE_CONTENTSHARE'
    value: toLower('functionApp-staging')
  }
  {
    name: 'AzureFunctionsJobHost__extensions__durableTask__hubName'
    value: '${solutionAbbreviation}compute${environmentAbbreviationStaging}'
  }
  {
    name: 'AzureWebJobs.StarterFunction.Disabled'
    value: 1
  }
]

var productionSettings = [
  {
    name: 'WEBSITE_CONTENTSHARE'
    value: toLower('functionApp')
  }
  {
    name: 'AzureFunctionsJobHost__extensions__durableTask__hubName'
    value: '${solutionAbbreviation}compute${environmentAbbreviation}'
  }
  {
    name: 'AzureWebJobs.StarterFunction.Disabled'
    value: 0
  }
]

module functionAppTemplate 'functionApp.bicep' = {
  name: 'functionAppTemplater'
  params: {
    name: '${functionAppName}'
    kind: functionAppKind
    location: location
    servicePlanName: servicePlanName
    dataKeyVaultName: dataKeyVaultName
    dataKeyVaultResourceGroup: dataKeyVaultResourceGroup
    secretSettings: union(appSettings, productionSettings)
  }
  dependsOn: [
    servicePlanTemplate
  ]
}

module functionAppSlotTemplate 'functionAppSlot.bicep' = {
  name: 'functionAppSlotTemplate'
  params: {
    name: '${functionAppName}/staging'
    kind: functionAppKind
    location: location
    servicePlanName: servicePlanName
    dataKeyVaultName: dataKeyVaultName
    dataKeyVaultResourceGroup: dataKeyVaultResourceGroup
    secretSettings: union(appSettings, stagingSettings)
  }
  dependsOn: [
    functionAppTemplate
  ]
}
functionapp.bicep

resource functionApp 'Microsoft.Web/sites@2018-02-01' = {
  name: name
  location: location
  kind: kind
  properties: {
    serverFarmId: resourceId('Microsoft.Web/serverfarms', servicePlanName)
    clientAffinityEnabled: false
    httpsOnly: true
    siteConfig: {
      use32BitWorkerProcess : false
      appSettings: secretSettings
    }
  }
  identity: {
    type: 'SystemAssigned'
  }
}
functionAppSlot.bicep

resource functionAppSlot 'Microsoft.Web/sites/slots@2018-11-01' = {
  name: name
  kind: kind
  location: location
  properties: {
    clientAffinityEnabled: true
    enabled: true
    httpsOnly: true
    serverFarmId: resourceId('Microsoft.Web/serverfarms', servicePlanName)
    siteConfig: {
      use32BitWorkerProcess : false
      appSettings: secretSettings
    }
  }
  identity: {
    type: 'SystemAssigned'
  }
}