Azure WebJob deployment keeps failing

Since yesterday I'm suddenly having consistent deployment failures for my existing WebJobs. The error I'm getting is

Start Web Deploy Publish the Application/package to https://octotrip-api-test-dev.scm.azurewebsites.net/msdeploy.axd?site=octotrip-api-test__dev ...
Adding sitemanifest (sitemanifest).
Adding directory (XXX\app_data).
Adding directory (XXX\app_data\jobs).
Adding directory (XXX\app_data\jobs\continuous).
C:\Program Files (x86)\Microsoft Visual Studio\2017\Enterprise\MSBuild\Microsoft\VisualStudio\v15.0\Web\Microsoft.Web.Publishing.targets(4295,5): Error : Web deployment task failed. ((3/16/2017 1:32:23 PM) An error occurred when the request was processed on the remote computer.)

(3/16/2017 1:32:23 PM) An error occurred when the request was processed on the remote computer.
An error was encountered when processing operation 'Create Directory' on 'D:\home\site\wwwroot\app_data\jobs\continuous'.
The error code was 0x800700B7.
Cannot create "D:\home\site\wwwroot\app_data\jobs\continuous" because a file or directory with the same name already exists.
at Microsoft.Web.Deployment.NativeMethods.RaiseIOExceptionFromErrorCode(Win32ErrorCode errorCode, String maybeFullPath)
at Microsoft.Web.Deployment.DirectoryEx.CreateDirectory(String path)
at Microsoft.Web.Deployment.DirPathProviderBase.CreateDirectory(String fullPath, DeploymentObject source)
at Microsoft.Web.Deployment.DirPathProviderBase.Add(DeploymentObject source, Boolean whatIf)
Publish failed to deploy.

Important to note that at the time of the deployment; there is no app_data folder (I removed it manually using FTP). You can see it is creating the folder structure step by step; app_data, then the jobs folder, then the continuous folder. I confirmed using FTP that he succesfully creates the app_data/jobs folder; but creating the continuous folder consistently crashes.

This happens when deploying using a build definition in VSTS as well as deploying as a WebJob from within Visual Studio; with all the WebJob NuGet up to date.

Thanks

It is very odd that can't create folder for WebJob. I can't repro it in my side. Do you have a try to deploy it to another website to check whether it can be repro? Based on my experience, we could troubleshoot with following ways:

1. Restart the Website

2. If it is possible try to redeploy the Website and remove additional files at destination

3. Scale up and scale down back Service plan

Note:change will be applied to all WebApps in the ServicePlan

4. Please contact Azure Support team for help if it is not resolved .