In order for the Azure Portal to show an active integration with Application Insights, you need to set two app settings. The reason is that you also need to configure the Application Insights Agent Extension.
Note that setting the InstrumentationKey(deprecated) or connection string might be enough for your application to send telemetry to ApplicationInsights, e.g. if you are using ASP.NET Core and the corresponding Nuget package. But you will need both settings for the portal to show the active integration.
{
"resources": [
{
"name": "[parameters('name')]",
"type": "Microsoft.Web/sites",
"properties": {
"siteConfig": {
"appSettings": [
{
"name": "APPLICATIONINSIGHTS_CONNECTION_STRING",
"value": "[reference('microsoft.insights/components/AppMonitoredSite', '2015-05-01').ConnectionString]"
},
{
"name": "ApplicationInsightsAgent_EXTENSION_VERSION",
"value": "~2"
}
]
},
"name": "[parameters('name')]",
"serverFarmId": "[concat('/subscriptions/', parameters('subscriptionId'),'/resourcegroups/', parameters('serverFarmResourceGroup'), '/providers/Microsoft.Web/serverfarms/', parameters('hostingPlanName'))]",
"hostingEnvironment": "[parameters('hostingEnvironment')]"
},
"dependsOn": [
"[concat('Microsoft.Web/serverfarms/', parameters('hostingPlanName'))]",
"microsoft.insights/components/AppMonitoredSite"
],
"apiVersion": "2016-03-01",
"location": "[parameters('location')]"
},
{
"apiVersion": "2016-09-01",
"name": "[parameters('hostingPlanName')]",
"type": "Microsoft.Web/serverfarms",
"location": "[parameters('location')]",
"properties": {
"name": "[parameters('hostingPlanName')]",
"workerSizeId": "[parameters('workerSize')]",
"numberOfWorkers": "1",
"hostingEnvironment": "[parameters('hostingEnvironment')]"
},
"sku": {
"Tier": "[parameters('sku')]",
"Name": "[parameters('skuCode')]"
}
},
{
"apiVersion": "2015-05-01",
"name": "AppMonitoredSite",
"type": "microsoft.insights/components",
"location": "West US 2",
"properties": {
"ApplicationId": "[parameters('name')]",
"Request_Source": "IbizaWebAppExtensionCreate"
}
}
],
"parameters": {
"name": {
"type": "string"
},
"hostingPlanName": {
"type": "string"
},
"hostingEnvironment": {
"type": "string"
},
"location": {
"type": "string"
},
"sku": {
"type": "string"
},
"skuCode": {
"type": "string"
},
"workerSize": {
"type": "string"
},
"serverFarmResourceGroup": {
"type": "string"
},
"subscriptionId": {
"type": "string"
}
},
"$schema": "https://schema.management.azure.com/schemas/2014-04-01-preview/deploymentTemplate.json#",
"contentVersion": "1.0.0.0"
}
See also my other answer on this: Azure Cli How to enable Application Insights for webapp
Edit: updated based on the new information in the answer by BearOakheart.