Azure App service is configured with LocalGit as source code management type, and repository folder is set to 'wwwroot'. This may make expose the source code to public internet.
In Azure Console -
In Terraform -
References:
https://learn.microsoft.com/en-us/azure/app-service/deploy-local-git?source=recommendations&tabs=cli
https://registry.terraform.io/providers/hashicorp/azurerm/latest/docs/resources/app_service#scm_type