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A developer is setting up Visual Studio Code (VS Code) for a new project that requires integration with Azure Functions. The developer needs to ensure that the environment is configured correctly to support debugging and deployment of serverless functions. Which of the following steps should the developer prioritize to ensure a smooth setup and functionality of Azure Functions within VS Code?
Install the Azure Functions extension for Visual Studio Code and configure the local development environment to use the Azure Functions Core Tools.
Set up a new Azure subscription and create a resource group for the project.
Download and install the latest version of .NET Framework to ensure compatibility with Azure Functions.
Create a new Azure Storage account to store function logs and outputs.

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