Problem Identified:

Since General-purpose v1 does not support Blob Access Tier, it is recommended to use a General-purpose v2 or Blob Storage account. Simply upgrade from v1 to v2 in the Azure Blob control interface to resolve this error.

Reference link: https://learn.microsoft.com/en-us/azure/storage/common/storage-account-upgrade?tabs=azure-portal

The files within the folders are completely deleted, but the folders themselves are not being deleted.