diff --git a/src/commands/addBinding/settingSteps/AzureConnectionCreateStepBase.ts b/src/commands/addBinding/settingSteps/AzureConnectionCreateStepBase.ts
index 0254eddba..9a8a0507e 100644
--- a/src/commands/addBinding/settingSteps/AzureConnectionCreateStepBase.ts
+++ b/src/commands/addBinding/settingSteps/AzureConnectionCreateStepBase.ts
@@ -8,23 +8,24 @@ import { type Progress } from 'vscode';
 import { setLocalAppSetting } from '../../../funcConfig/local.settings';
 import { localize } from '../../../localize';
 import { type IBindingSetting } from '../../../templates/IBindingTemplate';
-import { nonNullProp } from '../../../utils/nonNull';
-import { setBindingSetting } from '../../createFunction/IFunctionWizardContext';
-import { type IBindingWizardContext } from '../IBindingWizardContext';
+import { type ParsedInput } from '../../../templates/script/parseScriptTemplatesV2';
+import { setBindingSetting, type IFunctionWizardContext } from '../../createFunction/IFunctionWizardContext';
 
 export interface IConnection {
     name: string;
     connectionString: string;
 }
 
-export abstract class AzureConnectionCreateStepBase<T extends IBindingWizardContext> extends AzureWizardExecuteStep<T> {
+export abstract class AzureConnectionCreateStepBase<T extends IFunctionWizardContext> extends AzureWizardExecuteStep<T> {
     public priority: number = 200;
 
-    private readonly _setting: IBindingSetting;
+    private readonly _setting: IBindingSetting | ParsedInput;
+    private readonly _resourceType: string;
 
-    constructor(setting: IBindingSetting) {
+    constructor(setting: IBindingSetting | ParsedInput) {
         super();
         this._setting = setting;
+        this._resourceType = (setting as IBindingSetting).resourceType ?? (setting as ParsedInput).resource ?? '';
     }
 
     public abstract getConnection(context: T): Promise<IConnection>;
@@ -33,7 +34,7 @@ export abstract class AzureConnectionCreateStepBase<T extends IBindingWizardCont
         progress.report({ message: localize('retrieving', 'Retrieving connection string...') });
 
         const result: IConnection = await this.getConnection(context);
-        let appSettingKey: string = `${result.name}_${nonNullProp(this._setting, 'resourceType').toUpperCase()}`;
+        let appSettingKey: string = `${result.name}_${this._resourceType.toUpperCase()}`;
         appSettingKey = appSettingKey.replace(/[^a-z0-9_\.]/gi, ''); // remove invalid chars
         setBindingSetting(context, this._setting, appSettingKey);
         await setLocalAppSetting(context, context.projectPath, appSettingKey, result.connectionString);
diff --git a/src/commands/addBinding/settingSteps/BindingSettingStepBase.ts b/src/commands/addBinding/settingSteps/BindingSettingStepBase.ts
index 46566fc04..d4e289f85 100644
--- a/src/commands/addBinding/settingSteps/BindingSettingStepBase.ts
+++ b/src/commands/addBinding/settingSteps/BindingSettingStepBase.ts
@@ -6,25 +6,27 @@
 import { AzureWizardPromptStep } from "@microsoft/vscode-azext-utils";
 import { type BindingSettingValue } from "../../../funcConfig/function";
 import { type IBindingSetting } from "../../../templates/IBindingTemplate";
-import { getBindingSetting, setBindingSetting } from "../../createFunction/IFunctionWizardContext";
-import { type IBindingWizardContext } from "../IBindingWizardContext";
+import { type ParsedInput } from "../../../templates/script/parseScriptTemplatesV2";
+import { getBindingSetting, setBindingSetting, type IFunctionWizardContext } from "../../createFunction/IFunctionWizardContext";
 
-export abstract class BindingSettingStepBase extends AzureWizardPromptStep<IBindingWizardContext> {
-    protected readonly _setting: IBindingSetting;
+export abstract class BindingSettingStepBase extends AzureWizardPromptStep<IFunctionWizardContext> {
+    protected readonly _setting: IBindingSetting | ParsedInput;
+    protected readonly _resourceType: string;
 
-    constructor(setting: IBindingSetting) {
+    constructor(setting: IBindingSetting | ParsedInput) {
         super();
         this._setting = setting;
         this.id = setting.name;
+        this._resourceType = (setting as IBindingSetting).resourceType ?? (setting as ParsedInput).resource ?? '';
     }
 
-    public abstract promptCore(context: IBindingWizardContext): Promise<BindingSettingValue>;
+    public abstract promptCore(context: IFunctionWizardContext): Promise<BindingSettingValue>;
 
-    public async prompt(context: IBindingWizardContext): Promise<void> {
+    public async prompt(context: IFunctionWizardContext): Promise<void> {
         setBindingSetting(context, this._setting, await this.promptCore(context));
     }
 
-    public shouldPrompt(context: IBindingWizardContext): boolean {
+    public shouldPrompt(context: IFunctionWizardContext): boolean {
         return !getBindingSetting(context, this._setting);
     }
 }
diff --git a/src/commands/addBinding/settingSteps/BooleanPromptStep.ts b/src/commands/addBinding/settingSteps/BooleanPromptStep.ts
index 4113b77ed..08af3cb15 100644
--- a/src/commands/addBinding/settingSteps/BooleanPromptStep.ts
+++ b/src/commands/addBinding/settingSteps/BooleanPromptStep.ts
@@ -5,6 +5,7 @@
 
 import { type IAzureQuickPickItem } from "@microsoft/vscode-azext-utils";
 import { type BindingSettingValue } from "../../../funcConfig/function";
+import { type IBindingSetting } from "../../../templates/IBindingTemplate";
 import { envUtils } from "../../../utils/envUtils";
 import { type IBindingWizardContext } from "../IBindingWizardContext";
 import { BindingSettingStepBase } from "./BindingSettingStepBase";
@@ -18,6 +19,6 @@ export class BooleanPromptStep extends BindingSettingStepBase {
             picks = picks.reverse();
         }
 
-        return (await context.ui.showQuickPick(picks, { placeHolder: this._setting.description || this._setting.label })).data;
+        return (await context.ui.showQuickPick(picks, { placeHolder: (this._setting as IBindingSetting).description || this._setting.label })).data;
     }
 }
diff --git a/src/commands/addBinding/settingSteps/EnumPromptStep.ts b/src/commands/addBinding/settingSteps/EnumPromptStep.ts
index 06478e374..b1af7fa78 100644
--- a/src/commands/addBinding/settingSteps/EnumPromptStep.ts
+++ b/src/commands/addBinding/settingSteps/EnumPromptStep.ts
@@ -5,10 +5,14 @@
 
 import { type IAzureQuickPickItem } from "@microsoft/vscode-azext-utils";
 import { type BindingSettingValue } from "../../../funcConfig/function";
+import { type IBindingSetting } from "../../../templates/IBindingTemplate";
 import { type IBindingWizardContext } from "../IBindingWizardContext";
 import { BindingSettingStepBase } from "./BindingSettingStepBase";
 
 export class EnumPromptStep extends BindingSettingStepBase {
+    // not used by v2 schema so enforce  IBindingSetting
+    protected readonly _setting: IBindingSetting;
+
     public async promptCore(context: IBindingWizardContext): Promise<BindingSettingValue> {
         const picks: IAzureQuickPickItem<string>[] = this._setting.enums.map(e => { return { data: e.value, label: e.displayName }; });
         return (await context.ui.showQuickPick(picks, { placeHolder: this._setting.label })).data;
diff --git a/src/commands/addBinding/settingSteps/LocalAppSettingCreateStep.ts b/src/commands/addBinding/settingSteps/LocalAppSettingCreateStep.ts
index 706484f2f..d22908767 100644
--- a/src/commands/addBinding/settingSteps/LocalAppSettingCreateStep.ts
+++ b/src/commands/addBinding/settingSteps/LocalAppSettingCreateStep.ts
@@ -9,17 +9,18 @@ import { localSettingsFileName } from '../../../constants';
 import { setLocalAppSetting } from '../../../funcConfig/local.settings';
 import { localize } from '../../../localize';
 import { type IBindingSetting } from '../../../templates/IBindingTemplate';
+import { type ParsedInput } from '../../../templates/script/parseScriptTemplatesV2';
 import { nonNullProp, nonNullValue } from '../../../utils/nonNull';
-import { getBindingSetting } from '../../createFunction/IFunctionWizardContext';
+import { getBindingSetting, setBindingSetting } from '../../createFunction/IFunctionWizardContext';
 import { type IBindingWizardContext } from '../IBindingWizardContext';
 
 export class LocalAppSettingCreateStep extends AzureWizardExecuteStep<IBindingWizardContext> {
     public priority: number = 210;
 
-    private readonly _setting: IBindingSetting;
+    private readonly _setting: IBindingSetting | ParsedInput;
     private readonly _valueKey: string;
 
-    constructor(setting: IBindingSetting, valueKey: string) {
+    constructor(setting: IBindingSetting | ParsedInput, valueKey: string) {
         super();
         this._setting = setting;
         this._valueKey = valueKey;
@@ -29,6 +30,10 @@ export class LocalAppSettingCreateStep extends AzureWizardExecuteStep<IBindingWi
         progress.report({ message: localize('updatingLocalSettings', 'Updating {0}...', localSettingsFileName) });
         const appSettingName = String(nonNullValue(getBindingSetting(context, this._setting), this._setting.name));
         await setLocalAppSetting(context, context.projectPath, appSettingName, nonNullProp(context, this._valueKey as keyof IBindingWizardContext) as string);
+        // if the binding isn't already set then a new one was created
+        if (!getBindingSetting(context, this._setting)) {
+            setBindingSetting(context, this._setting, nonNullProp(context, this._valueKey as keyof IBindingWizardContext) as string);
+        }
     }
 
     public shouldExecute(context: IBindingWizardContext): boolean {
diff --git a/src/commands/addBinding/settingSteps/LocalAppSettingListStep.ts b/src/commands/addBinding/settingSteps/LocalAppSettingListStep.ts
index c431452bb..0d2a0de64 100644
--- a/src/commands/addBinding/settingSteps/LocalAppSettingListStep.ts
+++ b/src/commands/addBinding/settingSteps/LocalAppSettingListStep.ts
@@ -12,9 +12,8 @@ import { getLocalSettingsJson, type ILocalSettingsJson } from '../../../funcConf
 import { localize } from '../../../localize';
 import { ResourceType } from '../../../templates/IBindingTemplate';
 import { type IEventHubsConnectionWizardContext } from '../../appSettings/connectionSettings/eventHubs/IEventHubsConnectionWizardContext';
-import { getBindingSetting } from '../../createFunction/IFunctionWizardContext';
+import { getBindingSetting, type FunctionV2WizardContext, type IFunctionWizardContext } from '../../createFunction/IFunctionWizardContext';
 import { EventHubsNamespaceListStep } from '../../createFunction/durableSteps/netherite/EventHubsNamespaceListStep';
-import { type IBindingWizardContext } from '../IBindingWizardContext';
 import { BindingSettingStepBase } from './BindingSettingStepBase';
 import { LocalAppSettingCreateStep } from './LocalAppSettingCreateStep';
 import { LocalAppSettingNameStep } from './LocalAppSettingNameStep';
@@ -33,7 +32,7 @@ const showHiddenValuesItem = { label: localize('showHiddenValues', '$(eye) Show
 const hideHiddenValuesItem = { label: localize('hideHiddenValues', '$(eye-closed) Hide hidden values'), data: 'hiddenValues' }
 export class LocalAppSettingListStep extends BindingSettingStepBase {
     private _showHiddenValues: boolean = false;
-    public async promptCore(context: IBindingWizardContext): Promise<BindingSettingValue> {
+    public async promptCore(context: IFunctionWizardContext): Promise<BindingSettingValue> {
         const localSettingsPath: string = path.join(context.projectPath, localSettingsFileName);
         const settings: ILocalSettingsJson = await getLocalSettingsJson(context, localSettingsPath);
         const existingSettings: [string, string][] = settings.Values ? Object.entries(settings.Values) : [];
@@ -43,7 +42,10 @@ export class LocalAppSettingListStep extends BindingSettingStepBase {
         do {
             let picks: IAzureQuickPickItem<string | undefined>[] = [{ label: localize('newAppSetting', '$(plus) Create new local app setting'), data: undefined }];
             picks = picks.concat(existingSettings.map((s: [string, string]) => { return { data: s[0], label: s[0], description: this._showHiddenValues ? s[1] : '******' }; }));
-            picks.push(this._showHiddenValues ? hideHiddenValuesItem : showHiddenValuesItem);
+            if (picks.length > 1) {
+                // don't add hidden values item if there are no existing settings
+                picks.push(this._showHiddenValues ? hideHiddenValuesItem : showHiddenValuesItem);
+            }
             result = (await context.ui.showQuickPick(picks, { placeHolder })).data;
             if (result === 'hiddenValues') {
                 this._showHiddenValues = !this._showHiddenValues;
@@ -54,11 +56,11 @@ export class LocalAppSettingListStep extends BindingSettingStepBase {
         } while (true);
     }
 
-    public async getSubWizard(context: IBindingWizardContext): Promise<IWizardOptions<IBindingWizardContext> | undefined> {
+    public async getSubWizard(context: IFunctionWizardContext): Promise<IWizardOptions<IFunctionWizardContext & FunctionV2WizardContext> | undefined> {
         if (!getBindingSetting(context, this._setting)) {
-            const azurePromptSteps: AzureWizardPromptStep<IBindingWizardContext & ISubscriptionActionContext & IEventHubsConnectionWizardContext>[] = [];
-            const azureExecuteSteps: AzureWizardExecuteStep<IBindingWizardContext & ISubscriptionActionContext & IEventHubsConnectionWizardContext>[] = [];
-            switch (this._setting.resourceType) {
+            const azurePromptSteps: AzureWizardPromptStep<IFunctionWizardContext & ISubscriptionActionContext & IEventHubsConnectionWizardContext>[] = [];
+            const azureExecuteSteps: AzureWizardExecuteStep<IFunctionWizardContext & ISubscriptionActionContext & IEventHubsConnectionWizardContext>[] = [];
+            switch (this._resourceType) {
                 case ResourceType.DocumentDB:
                     azurePromptSteps.push(new CosmosDBListStep());
                     azureExecuteSteps.push(new CosmosDBConnectionCreateStep(this._setting));
diff --git a/src/commands/addBinding/settingSteps/LocalAppSettingNameStep.ts b/src/commands/addBinding/settingSteps/LocalAppSettingNameStep.ts
index ebc176ee1..f11ec503f 100644
--- a/src/commands/addBinding/settingSteps/LocalAppSettingNameStep.ts
+++ b/src/commands/addBinding/settingSteps/LocalAppSettingNameStep.ts
@@ -5,13 +5,12 @@
 
 import { type BindingSettingValue } from '../../../funcConfig/function';
 import { localize } from '../../../localize';
-import { nonNullProp } from '../../../utils/nonNull';
 import { type IBindingWizardContext } from '../IBindingWizardContext';
 import { BindingSettingStepBase } from './BindingSettingStepBase';
 
 export class LocalAppSettingNameStep extends BindingSettingStepBase {
     public async promptCore(context: IBindingWizardContext): Promise<BindingSettingValue> {
-        const appSettingSuffix: string = `_${nonNullProp(this._setting, 'resourceType').toUpperCase()}`;
+        const appSettingSuffix: string = `_${this._resourceType.toUpperCase()}`;
         return await context.ui.showInputBox({
             placeHolder: localize('appSettingKeyPlaceholder', 'Local app setting key'),
             prompt: localize('appSettingKeyPrompt', 'Provide a key for a connection string'),
diff --git a/src/commands/addBinding/settingSteps/StorageConnectionCreateStep.ts b/src/commands/addBinding/settingSteps/StorageConnectionCreateStep.ts
index 06f7ebd0a..607eabf4f 100644
--- a/src/commands/addBinding/settingSteps/StorageConnectionCreateStep.ts
+++ b/src/commands/addBinding/settingSteps/StorageConnectionCreateStep.ts
@@ -5,15 +5,15 @@
 
 import { type IStorageAccountWizardContext } from '@microsoft/vscode-azext-azureutils';
 import { getStorageConnectionString } from '../../appSettings/connectionSettings/getLocalConnectionSetting';
-import { type IBindingWizardContext } from '../IBindingWizardContext';
+import { type IFunctionWizardContext } from '../../createFunction/IFunctionWizardContext';
 import { AzureConnectionCreateStepBase, type IConnection } from './AzureConnectionCreateStepBase';
 
-export class StorageConnectionCreateStep extends AzureConnectionCreateStepBase<IStorageAccountWizardContext & IBindingWizardContext> {
-    public async getConnection(context: IStorageAccountWizardContext & Partial<IBindingWizardContext>): Promise<IConnection> {
+export class StorageConnectionCreateStep extends AzureConnectionCreateStepBase<IStorageAccountWizardContext & IFunctionWizardContext> {
+    public async getConnection(context: IStorageAccountWizardContext & IFunctionWizardContext): Promise<IConnection> {
         return await getStorageConnectionString(context);
     }
 
-    public shouldExecute(context: IStorageAccountWizardContext & Partial<IBindingWizardContext>): boolean {
+    public shouldExecute(context: IStorageAccountWizardContext & IFunctionWizardContext): boolean {
         return !!context.storageAccount || !!context.useStorageEmulator;
     }
 }
diff --git a/src/commands/addBinding/settingSteps/StorageTypePromptStep.ts b/src/commands/addBinding/settingSteps/StorageTypePromptStep.ts
index 2439a2c99..8045f8a63 100644
--- a/src/commands/addBinding/settingSteps/StorageTypePromptStep.ts
+++ b/src/commands/addBinding/settingSteps/StorageTypePromptStep.ts
@@ -7,19 +7,20 @@ import { StorageAccountKind, StorageAccountListStep, StorageAccountPerformance,
 import { AzureWizardPromptStep, type AzureWizardExecuteStep, type IAzureQuickPickItem, type ISubscriptionActionContext, type IWizardOptions } from "@microsoft/vscode-azext-utils";
 import { localize } from "../../../localize";
 import { type IBindingSetting } from "../../../templates/IBindingTemplate";
+import { type ParsedInput } from "../../../templates/script/parseScriptTemplatesV2";
 import { type IEventHubsConnectionWizardContext } from "../../appSettings/connectionSettings/eventHubs/IEventHubsConnectionWizardContext";
-import { type IBindingWizardContext } from "../IBindingWizardContext";
+import { type IFunctionWizardContext } from "../../createFunction/IFunctionWizardContext";
 import { StorageConnectionCreateStep } from "./StorageConnectionCreateStep";
 
-export class StorageTypePromptStep extends AzureWizardPromptStep<IBindingWizardContext> {
-    private readonly _setting: IBindingSetting;
+export class StorageTypePromptStep extends AzureWizardPromptStep<IFunctionWizardContext> {
+    private readonly _setting: IBindingSetting | ParsedInput;
 
-    constructor(setting: IBindingSetting) {
+    constructor(setting: IBindingSetting | ParsedInput) {
         super();
         this._setting = setting;
     }
 
-    public async prompt(context: IBindingWizardContext): Promise<void> {
+    public async prompt(context: IFunctionWizardContext): Promise<void> {
         const picks: IAzureQuickPickItem<boolean>[] = [
             { label: localize('useAzurite', 'Use Azurite emulator for local storage'), data: true },
             { label: localize('useAzureStorage', 'Use Azure Storage for remote storage'), data: false }
@@ -29,13 +30,13 @@ export class StorageTypePromptStep extends AzureWizardPromptStep<IBindingWizardC
         return;
     }
 
-    public shouldPrompt(context: IBindingWizardContext): boolean {
+    public shouldPrompt(context: IFunctionWizardContext): boolean {
         return context.useStorageEmulator === undefined;
     }
 
-    public async getSubWizard(context: IBindingWizardContext): Promise<IWizardOptions<IBindingWizardContext> | undefined> {
-        const promptSteps: AzureWizardPromptStep<IBindingWizardContext & ISubscriptionActionContext & IEventHubsConnectionWizardContext>[] = [];
-        const executeSteps: AzureWizardExecuteStep<IBindingWizardContext & ISubscriptionActionContext & IEventHubsConnectionWizardContext>[] = [];
+    public async getSubWizard(context: IFunctionWizardContext): Promise<IWizardOptions<IFunctionWizardContext> | undefined> {
+        const promptSteps: AzureWizardPromptStep<IFunctionWizardContext & ISubscriptionActionContext & IEventHubsConnectionWizardContext>[] = [];
+        const executeSteps: AzureWizardExecuteStep<IFunctionWizardContext & ISubscriptionActionContext & IEventHubsConnectionWizardContext>[] = [];
 
         if (!context.useStorageEmulator) {
             promptSteps.push(new StorageAccountListStep(
diff --git a/src/commands/addBinding/settingSteps/StringPromptStep.ts b/src/commands/addBinding/settingSteps/StringPromptStep.ts
index 6d1699d3f..bc66874ed 100644
--- a/src/commands/addBinding/settingSteps/StringPromptStep.ts
+++ b/src/commands/addBinding/settingSteps/StringPromptStep.ts
@@ -5,10 +5,13 @@
 
 import { type BindingSettingValue } from "../../../funcConfig/function";
 import { localize } from "../../../localize";
+import { type IBindingSetting } from "../../../templates/IBindingTemplate";
 import { type IBindingWizardContext } from "../IBindingWizardContext";
 import { BindingSettingStepBase } from "./BindingSettingStepBase";
 
 export class StringPromptStep extends BindingSettingStepBase {
+    // not used by v2 schema so enforce  IBindingSetting
+    protected readonly _setting: IBindingSetting;
     public async promptCore(context: IBindingWizardContext): Promise<BindingSettingValue> {
         return await context.ui.showInputBox({
             placeHolder: this._setting.label,
diff --git a/src/commands/addBinding/settingSteps/cosmosDB/CosmosDBConnectionCreateStep.ts b/src/commands/addBinding/settingSteps/cosmosDB/CosmosDBConnectionCreateStep.ts
index 8cda4801d..5562c046f 100644
--- a/src/commands/addBinding/settingSteps/cosmosDB/CosmosDBConnectionCreateStep.ts
+++ b/src/commands/addBinding/settingSteps/cosmosDB/CosmosDBConnectionCreateStep.ts
@@ -7,11 +7,11 @@ import { type CosmosDBManagementClient, type DatabaseAccountGetResults, type Dat
 import { getResourceGroupFromId } from '@microsoft/vscode-azext-azureutils';
 import { createCosmosDBClient } from '../../../../utils/azureClients';
 import { nonNullProp } from '../../../../utils/nonNull';
-import { type IBindingWizardContext } from '../../IBindingWizardContext';
+import { type IFunctionWizardContext } from '../../../createFunction/IFunctionWizardContext';
 import { AzureConnectionCreateStepBase, type IConnection } from '../AzureConnectionCreateStepBase';
 import { type ICosmosDBWizardContext } from './ICosmosDBWizardContext';
 
-export class CosmosDBConnectionCreateStep extends AzureConnectionCreateStepBase<IBindingWizardContext & ICosmosDBWizardContext> {
+export class CosmosDBConnectionCreateStep extends AzureConnectionCreateStepBase<IFunctionWizardContext & ICosmosDBWizardContext> {
     public async getConnection(context: ICosmosDBWizardContext): Promise<IConnection> {
         const databaseAccount: DatabaseAccountGetResults = nonNullProp(context, 'databaseAccount');
         const name: string = nonNullProp(databaseAccount, 'name');
diff --git a/src/commands/addBinding/settingSteps/eventHub/EventHubConnectionCreateStep.ts b/src/commands/addBinding/settingSteps/eventHub/EventHubConnectionCreateStep.ts
index 4e725a62b..0a59ad996 100644
--- a/src/commands/addBinding/settingSteps/eventHub/EventHubConnectionCreateStep.ts
+++ b/src/commands/addBinding/settingSteps/eventHub/EventHubConnectionCreateStep.ts
@@ -7,11 +7,11 @@ import { type AccessKeys, type EventHubManagementClient } from '@azure/arm-event
 import { nonNullValueAndProp } from '@microsoft/vscode-azext-utils';
 import { createEventHubClient } from '../../../../utils/azureClients';
 import { nonNullProp } from '../../../../utils/nonNull';
-import { type IBindingWizardContext } from '../../IBindingWizardContext';
+import { type IFunctionWizardContext } from '../../../createFunction/IFunctionWizardContext';
 import { AzureConnectionCreateStepBase, type IConnection } from '../AzureConnectionCreateStepBase';
 import { type IEventHubWizardContext } from './IEventHubWizardContext';
 
-export class EventHubConnectionCreateStep extends AzureConnectionCreateStepBase<IEventHubWizardContext & IBindingWizardContext> {
+export class EventHubConnectionCreateStep extends AzureConnectionCreateStepBase<IEventHubWizardContext & IFunctionWizardContext> {
     public async getConnection(context: IEventHubWizardContext): Promise<IConnection> {
         const namespaceName: string = nonNullValueAndProp(context.eventHubsNamespace, 'name');
         const resourceGroupName: string = nonNullValueAndProp(context.resourceGroup, 'name');
diff --git a/src/commands/addBinding/settingSteps/serviceBus/ServiceBusConnectionCreateStep.ts b/src/commands/addBinding/settingSteps/serviceBus/ServiceBusConnectionCreateStep.ts
index 08b214bb9..98f68ecf0 100644
--- a/src/commands/addBinding/settingSteps/serviceBus/ServiceBusConnectionCreateStep.ts
+++ b/src/commands/addBinding/settingSteps/serviceBus/ServiceBusConnectionCreateStep.ts
@@ -8,11 +8,11 @@ import { getResourceGroupFromId, uiUtils } from '@microsoft/vscode-azext-azureut
 import { localize } from '../../../../localize';
 import { createServiceBusClient } from '../../../../utils/azureClients';
 import { nonNullProp } from '../../../../utils/nonNull';
-import { type IBindingWizardContext } from '../../IBindingWizardContext';
+import { type IFunctionWizardContext } from '../../../createFunction/IFunctionWizardContext';
 import { AzureConnectionCreateStepBase, type IConnection } from '../AzureConnectionCreateStepBase';
 import { type IServiceBusWizardContext } from './IServiceBusWizardContext';
 
-export class ServiceBusConnectionCreateStep extends AzureConnectionCreateStepBase<IServiceBusWizardContext & IBindingWizardContext> {
+export class ServiceBusConnectionCreateStep extends AzureConnectionCreateStepBase<IServiceBusWizardContext & IFunctionWizardContext> {
     public async getConnection(context: IServiceBusWizardContext): Promise<IConnection> {
         const sbNamespace: SBNamespace = nonNullProp(context, 'sbNamespace');
         const id: string = nonNullProp(sbNamespace, 'id');
diff --git a/src/commands/createFunction/IFunctionWizardContext.ts b/src/commands/createFunction/IFunctionWizardContext.ts
index 973693321..2d22856e8 100644
--- a/src/commands/createFunction/IFunctionWizardContext.ts
+++ b/src/commands/createFunction/IFunctionWizardContext.ts
@@ -8,7 +8,7 @@ import { type DurableBackendValues } from "../../constants";
 import { type BindingSettingValue } from "../../funcConfig/function";
 import { type IBindingSetting } from "../../templates/IBindingTemplate";
 import { type FunctionTemplateBase } from "../../templates/IFunctionTemplate";
-import { type ParsedJob } from "../../templates/script/parseScriptTemplatesV2";
+import { type ParsedInput, type ParsedJob } from "../../templates/script/parseScriptTemplatesV2";
 import { type IProjectWizardContext } from "../createNewProject/IProjectWizardContext";
 
 export interface IFunctionWizardContext extends Partial<ISubscriptionContext>, IProjectWizardContext {
@@ -18,6 +18,8 @@ export interface IFunctionWizardContext extends Partial<ISubscriptionContext>, I
     // Durable Functions
     hasDurableStorage?: boolean;
     newDurableStorageType?: DurableBackendValues;
+
+    useStorageEmulator?: boolean;
 }
 
 export interface FunctionV2WizardContext extends IFunctionWizardContext {
@@ -26,11 +28,11 @@ export interface FunctionV2WizardContext extends IFunctionWizardContext {
 }
 
 
-export function setBindingSetting(context: IFunctionWizardContext, setting: IBindingSetting, value: BindingSettingValue): void {
-    context[setting.name.toLowerCase()] = value;
+export function setBindingSetting(context: IFunctionWizardContext, setting: IBindingSetting | ParsedInput, value: BindingSettingValue): void {
+    context[setting.assignTo.toLowerCase()] = value;
 }
 
-export function getBindingSetting(context: IFunctionWizardContext, setting: IBindingSetting): BindingSettingValue {
-    const value = <BindingSettingValue>context[setting.name.toLowerCase()];
+export function getBindingSetting(context: IFunctionWizardContext, setting: IBindingSetting | ParsedInput): BindingSettingValue {
+    const value = <BindingSettingValue>context[setting.assignTo.toLowerCase()];
     return value === undefined && setting.required ? '' : value;
 }
diff --git a/src/commands/createFunction/JobsListStep.ts b/src/commands/createFunction/JobsListStep.ts
index 4dbf9d369..9cb74d1d9 100644
--- a/src/commands/createFunction/JobsListStep.ts
+++ b/src/commands/createFunction/JobsListStep.ts
@@ -35,8 +35,8 @@ export class JobsListStep extends AzureWizardPromptStep<IFunctionWizardContext>
 
             const executeSteps: AzureWizardExecuteStep<FunctionV2WizardContext>[] = [];
             context.job.parsedActions.map((pa, index) => {
-                // add index to increment the priority number
-                executeSteps.push(actionStepFactory(pa, index));
+                // add index to increment the priority number; start at 500 so other execute steps can be injected
+                executeSteps.push(actionStepFactory(pa, index + 500));
             });
 
             return { promptSteps, executeSteps };
diff --git a/src/commands/createFunction/actionStepsV2/GetTemplateFileContentExecuteStep.ts b/src/commands/createFunction/actionStepsV2/GetTemplateFileContentExecuteStep.ts
index ccb2cdc63..f365eca2d 100644
--- a/src/commands/createFunction/actionStepsV2/GetTemplateFileContentExecuteStep.ts
+++ b/src/commands/createFunction/actionStepsV2/GetTemplateFileContentExecuteStep.ts
@@ -25,7 +25,7 @@ export class GetTemplateFileContentExecuteStep<T extends FunctionV2WizardContext
         // all tokens saved on the context are prefixed with '$('
         const assignToTokens = Object.keys(context).filter(k => k.startsWith('$('));
         for (const token of assignToTokens) {
-            source = source.replace(new RegExp(this.escapeRegExp(token), 'g'), context[token] as string);
+            source = source.replace(new RegExp(this.escapeRegExp(token), 'gi'), context[token] as string);
         }
 
         const assignTo = nonNullProp(this.action, 'assignTo');
diff --git a/src/commands/createFunction/promptStepsV2/NewFileStep.ts b/src/commands/createFunction/promptStepsV2/NewFileStep.ts
index 3d89ce689..d8170e7ec 100644
--- a/src/commands/createFunction/promptStepsV2/NewFileStep.ts
+++ b/src/commands/createFunction/promptStepsV2/NewFileStep.ts
@@ -36,7 +36,7 @@ export class NewFileStep<T extends FunctionV2WizardContext> extends StringInputS
     }
 
     protected async validateInputCore(context: FunctionV2WizardContext, input: string | undefined): Promise<string | undefined> {
-        const error = super.validateInput(input);
+        const error = super.validateInput(input, this.input);
         if (error) {
             return error;
         }
diff --git a/src/commands/createFunction/promptStepsV2/PromptSchemaStepBase.ts b/src/commands/createFunction/promptStepsV2/PromptSchemaStepBase.ts
index aefc66af8..46dd84f35 100644
--- a/src/commands/createFunction/promptStepsV2/PromptSchemaStepBase.ts
+++ b/src/commands/createFunction/promptStepsV2/PromptSchemaStepBase.ts
@@ -20,15 +20,15 @@ export abstract class PromptSchemaStepBase<T extends FunctionV2WizardContext> ex
 
     protected abstract promptAction(context: T): Promise<unknown>;
 
-    protected validateInput(input: string | undefined): string | undefined {
-        if (!input && this.input.required) {
+    protected validateInput(value: string | undefined, parsedInput: ParsedInput): string | undefined {
+        if (!value && parsedInput.required) {
             return localize('promptV2StepEmpty', 'The input cannot be empty.');
         }
 
-        const validators = this.input.validators || [];
+        const validators = parsedInput.validators || [];
         for (const validator of validators) {
-            if (input) {
-                if (new RegExp(validator.expression).test(input)) {
+            if (value) {
+                if (!new RegExp(validator.expression).test(value)) {
                     return validator.errorText;
                 }
             }
diff --git a/src/commands/createFunction/promptStepsV2/StringInputStep.ts b/src/commands/createFunction/promptStepsV2/StringInputStep.ts
index 30f85a83e..e03ef8170 100644
--- a/src/commands/createFunction/promptStepsV2/StringInputStep.ts
+++ b/src/commands/createFunction/promptStepsV2/StringInputStep.ts
@@ -4,7 +4,6 @@
  *--------------------------------------------------------------------------------------------*/
 
 import { type AzExtInputBoxOptions } from "@microsoft/vscode-azext-utils";
-import { localize } from "../../../localize";
 import { type ParsedInput } from "../../../templates/script/parseScriptTemplatesV2";
 import { type FunctionV2WizardContext } from "../IFunctionWizardContext";
 import { PromptSchemaStepBase } from "./PromptSchemaStepBase";
@@ -20,26 +19,11 @@ export class StringInputStep<T extends FunctionV2WizardContext> extends PromptSc
             title: this.input.label,
             prompt: this.input.help,
             value: this.input.defaultValue,
-            validateInput: this.validateInput
+            validateInput: value => {
+                return this.validateInput(value, this.input);
+            }
         };
 
         return await context.ui.showInputBox(options);
     }
-
-    protected validateInput(input: string | undefined): string | undefined {
-        if (!input && this.input.required) {
-            return localize('promptV2StepEmpty', 'The input cannot be empty.');
-        }
-
-        const validators = this.input.validators || [];
-        for (const validator of validators) {
-            if (input) {
-                if (!new RegExp(validator.expression).test(input)) {
-                    return validator.errorText;
-                }
-            }
-        }
-
-        return undefined;
-    }
 }
diff --git a/src/commands/createFunction/promptStepsV2/promptStepFactory.ts b/src/commands/createFunction/promptStepsV2/promptStepFactory.ts
index d07cbe85a..608b92104 100644
--- a/src/commands/createFunction/promptStepsV2/promptStepFactory.ts
+++ b/src/commands/createFunction/promptStepsV2/promptStepFactory.ts
@@ -6,6 +6,7 @@
 import { type AzureWizardPromptStep } from "@microsoft/vscode-azext-utils";
 import { ResourceType } from "../../../templates/IBindingTemplate";
 import { type ParsedInput } from "../../../templates/script/parseScriptTemplatesV2";
+import { LocalAppSettingListStep } from "../../addBinding/settingSteps/LocalAppSettingListStep";
 import { type FunctionV2WizardContext } from "../IFunctionWizardContext";
 import { BooleanInputStep } from "./BooleanInputStep";
 import { EnumInputStep } from "./EnumInputStep";
@@ -26,7 +27,11 @@ export function promptStepFactory<T extends FunctionV2WizardContext>(input: Pars
                 case ResourceType.NewFile:
                     return new NewFileStep(input);
                 default:
-                    return new StringInputStep(input);
+                    if (input.resource) {
+                        return new LocalAppSettingListStep(input);
+                    } else {
+                        return new StringInputStep(input);
+                    }
             }
     }
 }
diff --git a/src/templates/IBindingTemplate.ts b/src/templates/IBindingTemplate.ts
index 7cbd4ca48..e3f6b5b8a 100644
--- a/src/templates/IBindingTemplate.ts
+++ b/src/templates/IBindingTemplate.ts
@@ -31,7 +31,7 @@ export interface IBindingSetting {
     name: string;
     validateSetting(value: string | undefined): string | undefined;
     // used by the new V2 schema as token to replace in content
-    assignTo?: string;
+    assignTo: string;
 }
 
 export enum ResourceType {
diff --git a/src/templates/dotnet/parseDotnetTemplates.ts b/src/templates/dotnet/parseDotnetTemplates.ts
index 29579fc3c..58ce81b2f 100644
--- a/src/templates/dotnet/parseDotnetTemplates.ts
+++ b/src/templates/dotnet/parseDotnetTemplates.ts
@@ -52,6 +52,7 @@ function parseDotnetSetting(rawSetting: IRawSetting): IBindingSetting {
 
     return {
         name: rawSetting.Name,
+        assignTo: rawSetting.Name,
         resourceType: undefined, // Dotnet templates do not give us resourceType information
         valueType,
         defaultValue: rawSetting.DefaultValue,
diff --git a/src/templates/script/parseScriptTemplates.ts b/src/templates/script/parseScriptTemplates.ts
index fa43c6d8b..1ccbb8002 100644
--- a/src/templates/script/parseScriptTemplates.ts
+++ b/src/templates/script/parseScriptTemplates.ts
@@ -136,6 +136,7 @@ function parseScriptSetting(data: object, resources: IResources, variables: IVar
 
     return {
         name: getVariableValue(resources, variables, rawSetting.name),
+        assignTo: getVariableValue(resources, variables, rawSetting.name),
         resourceType: rawSetting.resource,
         valueType: rawSetting.value,
         description: getDescription(),
@@ -227,6 +228,7 @@ export function parseScriptTemplate(rawTemplate: IRawTemplate, resources: IResou
                         if (functionSpecificDefaultValue) {
                             // overwrite common default value with the function-specific default value
                             setting.defaultValue = functionSpecificDefaultValue;
+                            setting.assignTo = setting.name;
                         }
                         userPromptedSettings.push(setting);
                     }
diff --git a/src/templates/script/parseScriptTemplatesV2.ts b/src/templates/script/parseScriptTemplatesV2.ts
index 8fda8ec5f..3178e0d9a 100644
--- a/src/templates/script/parseScriptTemplatesV2.ts
+++ b/src/templates/script/parseScriptTemplatesV2.ts
@@ -5,9 +5,11 @@
 
 import { nonNullValue } from '@microsoft/vscode-azext-utils';
 import { type ActionType, type ProjectLanguage } from '../../constants';
+import { localize } from '../../localize';
 import { type ResourceType } from '../IBindingTemplate';
 import { type FunctionV2Template } from '../IFunctionTemplate';
 import { TemplateSchemaVersion } from '../TemplateProviderBase';
+import { getResourceValue } from './parseScriptTemplates';
 
 /**
  * Describes script template resources to be used for parsing
@@ -72,11 +74,7 @@ interface RawUserPrompt {
     name: string;
     label: string;
     help?: string;
-    validators?: {
-        // string representation of a regex
-        expression: string;
-        errorText: string;
-    }[];
+    validators?: UserPromptValidator[];
     value: 'string' | 'enum' | 'boolean';
     enum?: {
         value: string;
@@ -86,6 +84,11 @@ interface RawUserPrompt {
     placeHolder?: string;
 }
 
+type UserPromptValidator = {
+    expression: string;
+    errorText: string;
+};
+
 export interface ParsedInput extends RawUserPrompt, RawInput {
 
 }
@@ -139,9 +142,18 @@ export function parseUserPrompts(rawUserPrompts: object[], resources: Resources)
             // all of the properties in the rawResources are in the format of "param_name" but the keys in the rawUserPrompt are in the format of "param-name"
             const paramName = userPrompt[key] as unknown;
             if (typeof paramName === 'string' && paramName.startsWith('$')) {
-                const resourceKey = paramName.substring(1);
-                // TODO: handle localization
-                userPrompt[key] = resources['en'][resourceKey];
+                userPrompt[key] = getResourceValue(resources, paramName, true) || paramName;
+            } else if (key === 'validators' && Array.isArray(rawUserPrompt[key])) {
+                const validators: UserPromptValidator[] = rawUserPrompt[key] as UserPromptValidator[];
+                for (const validator of validators) {
+                    // there are a few edge cases with tokens where the format is [variables('param_name')] instead of $param_name
+                    const matches: RegExpMatchArray | null = validator.errorText.match(/\[variables\(\'(.*)\'\)\]/);
+                    // but in the resources key is $variables_paramName
+                    validator.errorText = getResourceValue(resources, matches ? '$variables_' + matches[1] : validator.errorText, true)
+                        || localize('validatorError', 'Invalid input');
+                }
+
+                userPrompt[key] = validators;
             }
         }
 
@@ -149,4 +161,3 @@ export function parseUserPrompts(rawUserPrompts: object[], resources: Resources)
     }
     return userPrompts;
 }
-