What is the difference between in-process and isolated process functions?

Short answer: In-process: Runs within the same process as the Functions runtime. Direct access to runtime APIs. Isolated process: Runs in a separate process, providing better dependency isolation and .NET version flexibility.

Real-world example (ShopNest)

Order-paid events go to Service Bus; an Azure Function sends the confirmation email asynchronously.

Say this in the interview

1. Define — one clear sentence (the short answer above).
2. Example — relate it to a project like ShopNest or your real work.
3. Trade-off — when you would not use it.