Azure functions v4 now supports .NET 7 as runtime. This means you can build serverless applications using .NET 7 runtime while using the isolated process mode in Azure Functions v4.
It works by supplying an isolation model that decouples your function process from the Azure Functions runtime. The outcome is flexibility to target various versions of .NET and more effectively control dependencies and service registration.
This new feature is available for all Windows and Linux-based plans.
For more information here is the Microsoft documentation on Azure functions in an isolated process.