In my Azure DevOps CI/CD pipeline, I perform incremental resource group upgrade with .NET app deployment to AppService Web App (Stage slot -> prod slot). After running ARM script the second time, Web App content gets deleted on both prod and stage slots. Is it possible to keep web app binaries while performing incremental upgrade?
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You could run your WebApp from Package/ZIP. This is better from a performance point of view plus it would solve your issue with deleted binaries: https://github.com/Azure/app-service-announcements/issues/84

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I already do that using Azure App Service Deploy task. But i don't want to initiate new deployment after every ARM deployment. I want it to keep the binaries, and i'm wondering if this behaviour is by design – Alex Zyl Mar 25 '19 at 16:57
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If you do run from package, the binaries (i.e. the zip file) just gets mounted to the app service. Usually from a blob storage location (URL+SAS token). You don't need to run a deployment to generate that zip file again. – silent Mar 25 '19 at 17:00