For most function apps, you can change which major version of the functions runtime you run on by the toggle on "Function app settings" (or FUNCTIONS_EXTENSION_VERSION, although Node.js also needs WEBSITE_NODE_DEFAULT_VERSION changed on Windows).
For Linux app service apps, this won't work.
Instead, you need to go to Platform features => Container settings

And then change the image name:

(Ex: mcr.microsoft.com/azure-functions/dotnet:3.0-appservice)
cc: @balag0 @divyagandhii @anirudhgarg